Optimal Nonlinear Manufacture Pricing Model Based On Option-Game Theory

As far as enterprises are concerned, the velocity and intensity of technological innovations have become the two key elements to measure firms' achievements, competitive power and the potential for development. Also, technological innovations have brought firms lots of overwhelming investment opportunities. However, these investment opportunities are accompanied with the uncertainty, irreversibility and competition of technologies themselves, and thus lead to error decisions. The option-game theory and methodology can bring the uncertainty, irreversibility and competition to one analytical framework to evaluate project and make decision, which overcomes the limitations and shortcomings, combines corporate finance, management science and investment decisions and has formed a set of new strategic investment management methods of firms' technological innovation investment decisions. So, it is a more scientific modern investment decision-making method.This thesis's purpose lies in analyzing uncertain question of investment decision under the conditions of monopoly and competition by using option games theory and method, and establishes the optimal nonlinear pricing model of manufacture pricing and corresponding evaluation option-game model. Because of this purpose, the structure of this thesis does the arrangement as follows: First part: introduction. Second part and Third part: the model of real option games theory and method of the simple summing up and summary at present. The influencing facts of enterprise's innovation investment decision-making include irreversibility of costs, uncertainty faced by projects and competition because of the shared investment options between enterprises. The enterprise should analyze the projects investment in a decision framework which includes above three facts in order to obtain the optimal investment decisions. The technology innovation investment of enterprise has option-game characteristics, because that real option method can properly deal with uncertainty and irreversibility, and game theory can properly deal with investment competition between enterprises. Thus, we can apply option-game theory to make the decision of technology innovation investment. The fourth part discusses the investment decision of manufacture pricing of enterprise under monopoly on option, introduces firstly the theory base, then the establishment of the optimal nonlinear pricing model for buying one kind of manufacture and buying simultaneously two kinds of manufacture and corresponding evaluation model. The fifth part discusses the investment decision of manufacture pricing of enterprise under competition on option games. The last two parts are both based on option-game theory, we analyze the strategies and behaviors of manufacture pricing innovation investment of enterprise under the conditions of monopoly and competition by establishing corresponding option-game models.This thesis provides a brand-new theory and application framework for manufacture pricing investment decision-making of enterprise, which has theoretical significance and practical value to the decision-making and management of manufacture pricing project investment of enterprise.