Study On The Price Developing Mechanism Of Innovated-technology Products

Nowadays technology innovation has become one of the indispensable market powers. It impels one another with the other market powers such as enterprises, products, demands, price, and profits, thus forming a dynamic evolving system. From the standpoint of the price development of innovated products, the paper unfolds itself to illustrate the interaction mechanism of the system.The paper contains four distinct sections. The first section reviews the development history of the price theories and the current general study on the price problem of innovated products. Also it makes some comments, analyzes the weak points, and emphasizes the necessity of further study. Starting with the supply and demand of innovated products, the second section discusses the fluctuating demand pattern of the innovated products and the different supplying features of innovated products of enterprises on various scales during the technology diffusion by employing the analysis technique of maximizing utility and profit, against the background of the changing utility ratio with the introduction of advanced technology. The third section, based on the above qualitative analysis, makes an attempt to introduce the time variable into the price model of innovated products and presents a further analysis of the development pattern from the quantitative point. The forth section analyzes the function of technology, one of the key elements, in the forming of the modern industrial market structure, as well as the monopoly nature of and the attenuation law of the price of the innovated technology. From the market monopoly, it reaches the development pattern of the equilibrium price of innovated products. Combining the conclusions of the third and the forth sections, it states the inherent relation between the supply-demand change of innovated products and the monopoly development of innovated technology. the fifth section spreads further the sphere of study. From a new standpoint, it analyzes some problems such as the profits of innovated enterprises, the life cycle of products, the market structure and the advantages of enterprises, by using the related conclusions from the qualitative and quantitative study of the price development of innovated products.