Analysis And Comparison Of The Model Of Oligopolistic Price Competition

Since China boosted economic system reform aiming at establishing market economy, there have been numerous vicious competitions among enterprises by means of price competition, with the help of measures such as technical innovation, brand names, quality and after-sale service etc. , among which the price war in the colour TV industry has been particularly compelling. The paper makes discussion and research on the models of Monopolistic Competition based on the background of the price war in the colour TV industry which has great significance on the marketization process of the whole national economy of China.The paper makes overall analysis of a number of factors that may impact the pricing of manufacturers with different emphases, and points out how these factors influence the pricing of manufacturers and the degree and ways of the impact.After the analysis of and comments on existing theoretical models of monopolistic competition, the paper points out the problems of these models in explaining the monopolistic competition activity, for example, too many hypothesis conditions, can only explain the existing economic activities, while cannot predict the future trend of the activities of oligarchy and how monopolistic competition to achieve the balancing point, i.e. temporary armistice.Starting from the discussion on winning matrix without saddle points introduces the concept of mixed game, i.e. oligarchy will take the combination of a variety of activities to strike back its rivals instead of taking certain single activity. In regard to mixed game, finally its resolution is summed up as the resolution of two linear programming problems, and further draws the conclusion that in some situations, the resolution of LP problems can be converted into the resolution of two systems of linear equations. The resolution process will be further simplified by use of the being discussed relevant natures the resolution formulas and illustration calculations of some simple mixed games. The iterated algorithm given by the paper is more general, which can not only resolve the two-person mixed game under common situations, but also the situation of multi-person mixed game. What's more, the resolution resultcan also explain the future trend of Monopolistic Competition and the process of achieving balancing point. The model of the Paper can also be used by other industries for reference.