The Complexity Of Price Game Model In Oligopoly Market And Its Application

Since reform and opening up to 30 years, our air-condition industry goes through from small to large, and weak to strong. Air-conditioning market shows the monopolistic situation by constant evolution and adjustment and is entering a period of glorious development. In the background of energy reduction, new air-condition standards have been introduced. Besides changeable economic environment, air-conditioning enterprises compete drastically due to new industrial standard in the background of energy saving and emission reduction. How to win the competition is the key point for enterprises. Based on domestic and foreign related research and by using management theory, dynamic economic theory and the methods of nonlinear dynamics, the competitive behavior of oligopolies is analyzed within the framework of game theory. Also, development strategies of air-condition enterprise are proposed. The main content and innovative results are as follows :1. Nonlinear repeated game models for univariate and multi variables with bounded rationality are established and the some of the essential characteristics in the evolution process such as the stability of equilibrium point are analyzed. Numerical simulations are used to study bifurcation, the maximal Lyapunov exponent, strange attractors, and other chaotic characteristics of the system with different parameters. The relative economic implications are also explained.2. Complexity of triopoly and four-oligopoly repeated game model and the impacts of product substitution on system stability due to price transmission in are studied in detail. Numerical simulations confirm that stability and chaos may coexist in a system in spite all competitors use the same decision rules. On that basis, the main factors for leading the system to chaos are found via analyzing the influence of substitutability on the nonlinear dynamics.3. Delayed bounded rationality is introduced into the discrete dynamic system and its influence on system stability is analyzed. The related results demonstrate that the lagged structure cannot always improve system stability and main factors influencing stability are specific values of parameters and variables. Also, the increase of oligopolies adopting delayed decision and the period of delay have undetermined relations with system stability.4. The price competition strategy for oligopolies in differentiated product market is studied from the perspective of differentiation of consumer behavior. Different unit transportation cost is introduced into Hotelling model to reflect differentiation of consumers'brand preference; the consumers'maximal utilities are restricted to differentiate consumers'consumption capacity and provide firms theoretical basis for making more competitive strategies. Meanwhile, a dynamic Salop model is established to analyze the issue of positioning decisions for asymmetric multi-oligopolies.