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Research On The Pricing Policy Of Products In Fuzzy Environments

Posted on:2008-05-02Degree:MasterType:Thesis
Country:ChinaCandidate:B C RuanFull Text:PDF
GTID:2189360245493662Subject:Systems Engineering
Abstract/Summary:PDF Full Text Request
The optimum pricing problem of products in fuzzy environments has been carried on research in the paper. The price influences the income and profit of firm directly, it's an important factor which needs paying attention to in the market competition, and the change of price is apt to cause the attention and response of the rivals and customers, so rational pricing can make the firm keeping advantages in the market competition, expand market share, and make firms develop constantly. The market structure, cost and market demand are the main factors influencing products pricing.This thesis utilizes the fuzzy theory, describes the uncertain factors such as the market demand, cost to be fuzzy variables, and studies the firm's optimum pricing strategy based on the response of rival and retailer respectively.The firm needs to consider the rival's response while fixing the price. The article introduces firm's pricing strategy in different market structures at first, and mainly researches the firms optimum pricing behavior in the condition that there are two firms in the market and each firm fixes the price to be decision variable. In the situation that the firm and rival make price policy at the same time, the Bertrand model is used to describe the actions of the firm and the rival, and the optimal price that maximizes the firm's profit is obtained. In a situation that there are priority orders to decide the price, suppose that the firm prices first, the rival spots the price made by the firm, and takes action next. This paper has described this situation. Meanwhile, the firm should consider the retailer's response to decide the price. In reality, there are two kinds of situations, that the relationship between firm and retailer may be cooperative or noncooperative. If the firm and the retailer can't reach the cooperative situation, the paper describes the relation between firm and retailer as the form of two-stage game, and provides the fuzzy noncooperative pricing model; In the cooperative case, the goals of both the firm and the retailer are to maximize the joint profit, the thesis provides models to describe this case, and gives the steps which solve the optimum price. Examples are given to illustrate the validity and effectiveness of the models in the thesis.
Keywords/Search Tags:Pricing, Fuzzy variables, Rival, Retailer, Bertrand model, Two-stage game
PDF Full Text Request
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