The Mathematical Economics Analysis On Competitive Strategy Of Oligarchic Business

Non-cooperation game theory has been an important tool in economy research and variously [2] [16] [17] applied in modern economics[2][4][6][8] Oligarchic competition,as the important market competition,contains the main contents of game theory. It is not only the jumping-off point of game theory but also the main application.This thesis based on economy reality,the quantity competition and price competition are systematical researched. This thesis discloses how the business to compete in quantity and price,and discusses the factor that affects competition. The cost and product differentiation strategy should be applied when business is competing,and discussed the objective function with profit and quantity maximization. Next,the probability of cooperation is researched,and the difficulty and punishment quantity of oligarchic business with asymmetrical marginal cost are discussed,the probability of coorperation changes when punishment quantity changes. At last,the welfare loss when oligarchic business's marginal cost and demand and product differentiate vary is researched,the policy advice is given to the government how to regulate.