The Economic Game Analysis On Strategic Decision Of Oligarchic Factory

Non-Cooperation game theory has already become an important tool of the economic research, there are many applications in modern economics. Oligarchic competition is the main competitive form of the market competition, and it included the main contents of the game theory. It is not only the jumping-off point of game theory in early days but also the main application in modern economic society.Based on economic reality, this thesis researched the price competition between oligarchic factories and the problem of how to choose an ideal position. Four aspects of research work has done. Firstly, based on Betrand model, it expanded Betrand model and discussed how to solve "the contrary theory of the Betrand model" under these circumstances. Secondly, based on the classic Hotteling model, it inquiried into the difference cost model, changeable travel cost model, consuming concentrated model and the price competitive model that the consumers have purchasing choice. Meanwhile it analyzed the equilibrium price and equilibrium benefit under these different circumstances. Thirdly, based on the classic Hotteling model and the price competitive model in which the consumers have purchasing choice. It studied that how the oligarchic factories choose their ideal positions (when carrying on the price- position choice at the same time or carrying on the price- position choice or consumer having purchasing choice). In the competition, both parties of competition will choose the position which is more far from the market center. This conclusion contradicts with economic actuality. This position puzzle can be solved in multi-oligarchic competition. Fourthly, it researched the price competitive model when the oligarchic factories have producing ability limit. According to the conclusion of this model, it studied the Chinese telecommunication companies' price competition strategy and the reason why it become to be. It put forward some suggestion and opinion to price regulation department and Chinese telecommunication companies.