The Research On Bit-Product Demand And Supply

Information Age quietly arrives. Meanwile, with the popularity of the concept of Internet and the applications of Internet technology, computers, smart phones, tablet PCs and other terminal equipments have become an integral part of human society "good partners". At the same time, with people’s daily lives, the material world is no longer like the previous agricultural society and industrial society, as once the rich supply can easily meet the demand of the people, which is because the physical world has been involuntarily Homomorphisms it is to meet the people’s basic needs for survival on the basis of humanity into the world of bits and inspire people to higher levels of demand. The emergence of the world of bits is the science and technology of information and communication networks and electronic terminal flourish inevitable, and definitely not a flash in the pan.Economic phenomenon of bit-product in the world of bits tells us: bit-product is by no means simple permutations of0,1, their every "collision" will work either allow consumers or producers are extremely excited about the "spark". To consumers, this "spark" means changing desires and needs, to producers, this "spark" means more supply not caring about resources unlimited. Although, the world of bits is material world Homomorphisms, but in which bit-products are essentially different form atoms products in material world, because the law of the cost and resource constraints between them are different. Based on this, the research will explore the law of demand and supply, which is basic in bit-product economic law, to uncover the mystery of the world of bits, so as to provide a theoretical reference related entities in the development of related policy decision.This paper reviewed and evaluated the research on bit-product related issues, the characteristics and classification of bit-product used in this study, the demand and supply theory, the development process of game theory as well as the classic bargaining theory, and gave bit-product definition to redefine narrowly and broadly that bit-products in this study refers to bit or bit stream in the form of information products, narrow bit-product means storage and circulation of such products in the form of bits, and network hardware media is the form of a bit stream is transmitted. While the generalized bit-product means in addition to the narrow bit products, also bits and storage services, including transmission bit or bit stream in the form of this conceptual breakthrough the traditional meanings, embodied in the often use google, Baidu’s class search platform, E-mail, e-commerce platform and so on.This paper refined the most significant characteristic of bit-product_the bits economic externality based on review of bit-product characteristics’classification, to introduce the bits economic externality connotation and characteristics, and to expand the economic analysis of the characteristic, and focuses on the bits economic externality bit manufacturer marginal returns and returns to scale, and the bits economic externality impacts on consumer utility evaluation. On the basis of the above qualitative analysis, the author of the first to build the marginal consumer demand function simultaneously build the bit-product demand function comparing the atomic law of demand and use matlab tool doing demand model simulation analysis. Based on overview of classification of patterns of bit-product activity, the author expanded qualitative analysis both from the bit value in itself and consumer value. Based on CES utility function formula derivation, the author built the special case of two kinds bit-products demand model and multiple bit-products demand model using matlab simulation analysis tool on demand models, and summed up the law of bit-product demand.This paper based on compareing traditional economics the atom products supply analysis and summed up the defects of its supply theory explaining bit-product supply problems, and summed up a single bit-product and a variety of bit-products the law of supply. Due to under the bits economic environment, the supply (market size) price makes the main effects that with the increase in bit-product supply, decreasing the average cost of production, the price of the bit-pr oducts can be more lower. Therefore, in reality a lot of bit-roducts that we use are free of charge.It can be described in mthematical language as follows:in bit economy, the supply curve appears downward trend rather than upward trend. Rational producers will never be satisfied in providing a kind of bit-product and choose insteadly to provide a variety of bit-products in order to obtain greater benefits. Aalyzed that:other factors were constant, when the high price of a certain bit producers tend to provide more similar bit-products (that is, able to bring the same utility to the consumer a variety of bit-products), when the price of a certain bit-products to reduce or even zero, producers would not tend to provide the same kinds of bit-products. Taking into account the the equilibrium the bits economic system, the author based bargaining theory to build game model to study the optimal strategy equilibrium problem between the bit-product buyers and sellers under three scenarios. Three scenarios were complete information, incomplete information and bilateral auction mechanism. This paper also made model simulation analysis using matlab tool and compared to summarize the advantages and disadvantages of each model in order to prove the theoretical value of these modes.This paper further elaborated bit-product feedback effect causes, manifestations and its impact under bit economic environment on the basis of the above research, in order to provide a theoretical reference to the activities of the main bit economic system in the decision-making strategies.The main results and conclusions of this study are as follows:1This paper discussed and summed up bit-product features based on the study of the basic characteristics of bit-products, production characteristics, consumer characteristics and exchange properties and extracted bit economic externalities giving meaning characteristics of economic senses:(1) Bit economic externality definition:When a bit-product increases the value of the user with the user of the product or compatible products increased, where has been a characteristic of bit economic externalities. That is, since the number of users increases, the role of the bit External economic, the original user get free the added value inherent in the product without the need to provide appropriate compensation for this part of the value.(2) The bit economic externality makes bit value increases with the use of the product number, and at the same time, the bit-product related economic activity of economic entities (the maker of the product or consumers) of others and society caused by the non-the impact of market-oriented. I.e. the effectiveness of each user is obtained from the use of a bit product, is related to the total number of users. I.e. the effectiveness of each user is obtained from the use of a bit product, is related to the total number of users. The more the number of users, each user gets, the greater the effectiveness of, proportional to the number of bits using the product in the product value with the bit in the bit environment environment. Visible bit externalities addition to the characteristics of externality in terms of the characteristics of the bit also has the characteristics of the Internet and non-compensatory.(3) Bit economic externality emphasized the positive correlation of price and quantity, the use of a bit more people the greater the value, which prompted the later buyers to enter the market of the product given the higher prices are expected. Therefore, the bits economic externalities have far reaching economic sense:the bits the product decreasing cost and user value of the dual role of the value-added regular, so pay the cost of reproduction of a unit bit products decreases, eventually leading to marginal revenue increments. The bit economy bits economic externalities role, and the average cost of bit user tends to infinity tends to zero, so the supply-side revenue increases continued to increase with the scale of the user, the form returns to scale increments.2Based on the definition of the concept of this paper marginal consumer is given the general concept of the marginal consumer model The model reveals the use of the product of a bit frequency and the relationship between the bit product itself, models from a theoretical angle to explain the reasons for the changes and trends of the consumer surplus of the marginal consumer.1) For in terms of the the bit-product demand, on the one hand, with the expected sales increase, demand for consumer prices increased. On the other hand, the more consumers as Jiarubite economic environment, because bits economic external sexual role, the greater the value of the bit products, then the consumer’s willingness to pay. Based on this assumption in this study consumers’ willingness to pay and bit product is proportional to the price of build the bit product demand model and algorithm simulation model matlab tool, demonstrated the theoretical value of the model. Consider the role of the bits economic externality, the increase in modeling a new dimension to the variable R matlab tools to write algorithms and bit product demand curve shows the form of three-dimensional space to demonstrate theoretical significance of the model. Two-dimensional and three-dimensional simulation results are reflected, the bits of the law of demand specific performance for the the bit demand curve in an upward trend.2) Bit consumer utility evaluation factors, this study analyzed from two perspectives, one from bits of the product itself perspective, the bits economic environment; Metcalfe’s Law is how to expand. Metcalfe’s law extended to the bit value of the product study drawn:the bit value of the product for its growth in the square of the speed of the number of nodes, i.e. V=n2(V represented bits of the total value of the product, n represents the number of nodes bit product used), in which an extension given the cost of the law of diminishing bit environment and bit environment the user value of the value-added law, to allow Metcalfe rule greatly promote.3)The other is from the consumer’s point of view, the key consideration of the time value of the consumer, externality and switching costs of consumers as well as the bits economic environment of the personal capital and social capital in the consumers that bit utility evaluation role; whether to spend time idle or spend time search, are an integral part of the consumer time value, research analysis, although bits of the value of the products increase as consumers increased the frequency of use of the bit products the time value of consumers is one-way, so the bit to consider the time value of consumer product demand curve is very slow slope upward sloping trajectory bit product utility. With the rise of the technical level of information search, the level of consumer demand bit products is rising, and that the level of demand for the product of the level of information search and bits positive changes.4) Consumer externalities when consumers buy products not only by the constraints of the product itself, utility, and subject to the constraints of the expected number of other consumer products in the future may achieve information sharing. The cost of switching costs (switching costs) refers consumers to replace the original consumer goods with a commodity. Consumer products using some new bits conversion cost is inversely proportional to the bit demand price elasticity, ie higher switching costs, the smaller the elasticity of demand of the consumers of this bit products, and vice versa, if the switching costs are lower, consumers greater the elasticity of demand this bit products that consumers can be replaced at any time to use to be able to bring the same utility bit product. When personal capital or social capital play a role in the personal choice, the demand side may appear the phenomenon of increasing returns, will increase with the expansion of the size of the market (consumption)(increase), the price of consumer demand, the demand curve which may rise.5) The author used the CES utility function, and the the marginal capacity replacement rate and capacity elasticity of substitution concepts and mathematical expressions derived build a model based on the needs of the active form of bit product and write an algorithm using matlab tool model simulation analysis confirmed the the model theoretical value.6) Retrospective traditional economic the theory of atomic Product supply as well as on the basis of summing up the theory of the existence of defects, this study deduced analyzed single bit of the law of supply of products and a variety of bit products, bits economy, the supply curve of a single bit products the downward trend; bits of the type of product supply curve is an upward-sloping curve.3In this study, considering above bit on the basis of the demand and supply regular draw Rubinstein bargaining theory, game model building bits economic environment under three scenarios matlab tools to write algorithms for each model simulation comparison analysis was conclusions:incomplete information bargaining model is the the trading efficient the bilateral auction mechanism situational single price equilibrium and linear equilibrium model followed by the worst single-stage bargaining model with incomplete information contexts two-stage bargaining model.4In this study, considering the the bit system bits law of demand and supply law, demonstrate to draw bits economic system has a strong positive feedback effectIn this study, the main innovations are mainly as the following aspects:1To redefine the concept of bit products, and further study of its characteristics and classification:definition of bit products, and were referred to a master’s thesis in of Ma Qiunan Jiang Fang and Qian Kunpeng, but Jiang Fang and Qian Kunpeng, two people just follow the the Ma Qiunan defined bit products, that bit of information products in the form of products based on bits, did not adequately take into account the bit epitaxial this study consider that given a bit more comprehensive definition.2Establishing model based on the bit product classification demand: in bits economic environment, consumers personalized factors, build demand models consider the time value of consider external demand models, consider the personal and social capital, in bits economic environment utility model, and consider the utility value of the marginal consumer demand model. Due to the current demand modeling study, focused on the trading environment of the atom economy, only in2010, Jiang Fang bit environment demand modeling, but he still follows the traditional atom economy price as the independent variable routine. Therefore, this study proposes to consider the the consumers time value the effectiveness of the the bits economic externality economic bit personal capital and social capital product bit marginal consumers evaluation of influencing factors to build demand models, Jiang Fang scholars created the model together bit environments demand function to provide a set of scientific modeling method. 3Research buyers and sellers based on bit-product demand regular supply analysis creatively to build a game model under three scenarios: the optimal combination of strategies for future using game theory to study bit-product in the world economic problems of a new perspective. This is to bargain with the expansion and extension of the theory in the bits of Economic Research.4Bit economic environment, the role of the law of demand and supply of the product in bit reveal the effect of feedback bits economic system:in innovative point2,3foundation, create demand model consider policy makers own value bit product market particularity, the size of the market as an independent variable demand model optimization decisions. Optimization of demand as the objective function directly to the demand model as a decision variable price, this study intends to demand model as the objective function, since the size of the market as a decision-making variables for the demand and supply decisions provide a new optimization ideas. The bit products demonstrated no negative feedback on the basis of innovation4, and only positive feedback effects bits activities participants practical guidance meaning is different from the material and economic conditions.