Research On Analyzing The Process Of Competition Game And Its Complexity In Telecom Business Market

In recent years, Chinese government implements control policies for the telecom industry, it makes the Chinese telecommunication business market has been in a state of monopoly. With rapid development of telecommunications industry in recent years, the original operators’ monopoly has had the fundamental change, and the telecommunication business market gradually have evolved into the monopolistic competition in several oligopolistic telecommunication operators from the traditional monopoly. In May 2008, the latest round of telecommunication business market was restructured by the government. Three pillars in the China telecommunication business market have emerged: China Telecom, China Unicom and China Mobile. Three telecom operators change from a single business competition to full business competition. They realize all business coverage which contains the fixed telephone, fixed broadband networks, 2G, 3G, 4G mobile networks and other mobile terminal value-added businesses. Telecommunication business market translates from monopoly competition to free competition, from closed to open. The penetration of ongoing business and cooperation improve the telecom industry technology and the development of the telecom industry.In order to get more profits in the fierce competition in the telecommunication business market, the three operators have adopted strategic transformation. Therefore, analyze and research about three operators the competitive process on the basis of their strategic competition in the telecommunications market is very important. Chinese telecommunication business market is a typical oligopolistic market. Their competitions are game process among operators. Study on national game competition monopoly telecom operators, is both China’s management theory scholars and enterprise managers’ problem. Especially in recent decades, the development of Nash equilibrium theory and nonlinear dynamics provide an important analysis approach for the study of oligopoly model. Oligopoly game theory of economics is combined with the theory of bifurcation and chaos of nonlinear dynamics and its application to the study of economic and management issues, is one of the effective methods to the study of complex dynamic evolution of economic system, which fully embodies the characteristics of the discipline integration. This paper applies to study the oligopoly competition of price and telecommunication business market. A series of discrete dynamic system model is established. These models are different from the previous ones which add the telecommunication business market competition characteristic and theoretically perfect the theory of game and complexity in the economic management.This paper combines the game theory and nonlinear dynamics theory and applies to the telecommunication business market monopoly, respectively based on the Cournot model, Bertrand model and Cournot-Bertrand mixed model, using different rational expectations and nonlinear cost function, spillover effects, etc. We establish oligopoly telecom operator dynamic game model and study its inherent complexity., We get game equilibrium and local stability of the Nash equilibrium area from chaos theory and analyze the complex dynamic behavior: period doubling bifurcation, chaos characteristics, sensitivity to initial conditions, chaotic attractor, Lyapunov exponent etc. from system simulation results. Then we draw the conclusion when the amount of users or adjust the speed of price changes in the stable region the Nash equilibrium point of the system is in the stable state. When adjustment speed of user or the price is over system stability region, the system will produce a period-doubling bifurcation and chaotic state. According to the oligopoly game operators in the process of chaos, respectively, we use delay feedback control method and system variables of state feedback and parameter adjustment control strategy of telecommunication business market chaos for effective control. Based on the period doubling bifurcation diagram, Lyapunov exponent spectrum and time series of system we verify effectiveness chaos control and put forward the concrete control strategy. Some reasonable suggestions are put forward for benign competition of Chinese telecom operators and telecom industry and even government’s telecom regulation decision which have certain theoretical and practical significance. The main research results in this paper are as follows.Firstly,this paper combines the game theory and chaos theory that are applied to the typical characteristics of oligopoly fixed broadband network market, 3G and 4G mobile network market competition. Considering different types of telecommunication business market competition situation, respectively, more practical mathematical models are established. Not only the improved Cournot model and Bertrand model are used to examine the oligopolistic telecommunications market, but also at the first time, the improved Cournot-Bertrand mixed model is introduced into competition in the telecommunications market, to establish a mixed variables of user quantity and price as the decision variables of the model. The game process in the model is introduced to users and the price adjustment parameters to simulate the oligopoly of operators, and simulates the evolution process of the system by numerical method. The results show that the model is more close to the actual situation of competition between operators in the telecommunication business market.Secondly, as the operators of the telecommunication business market decision-making ability is not the same, the operators make different rational expectations by the brand awareness, signal quality, market share and other conditions in the future. Based on the hypothesis that the operators under the conditions are respectively provided with simple and rational expectations, adaptive expectation and limited rational expectations, this paper establishes the different rational expectations of duopoly and triopoly game models and emphasis on the influence on the stability of telecommunication business market parameters change with different expectations operators. The different rational game models are more consistent with the position and status of telecom operators in the oligopoly market and closer to the objective reality.In order to solve the chaos effect produced by operators in the process of the competition, this paper adopts two different chaotic control methods to control the chaos system, which makes the score of the bifurcation and chaos phenomena have been delayed or disappear. The system stabilizes to the Nash equilibrium and telecommunication business market is back to the orderly competition state. It provides a theoretical guidance for the telecom regulators publishing relevant policy and standardizing telecom business market competition.