Research On Output Desision Of Durable Goods' Firms On Condition That Sustitutable Perishable Products

As the development of market economy, the durable goods consumption is essential to people's ordinary consumption in the lives. While the popularization of durable goods leads to expansion for the substitutable perishable goods rapidly, also influences the production and consumption of it, and then result in the competition intensely. Some of the firms which produce durable goods choose to produce substitutable perishable products at the same time, and also some firms only choose to produce perishable products with substitute to a certain extent. And then, the current theory for durable goods is not fit the actual need for the firms,In this article, the game theory and dynamic programming will be used to discuss the influence of substitutability to firm's decision of output in consider with durable goods and substitutable perishable products in different markets. First, substitutability's impact on optimal output and profits in these two products in the context of selling and rent durable goods in monopoly market; and then, the consumers preference's impact on output and profits is deeply be analyzed when monopolists rent all the absolute durable goods; at last, the strategy selection in the oligopolistic firms is researched.Firms which produce durable goods choose to produce substitutable perishable products at the same time, the optimal output in the rent condition is be decided by substitutability and price elasticity, and relationship between profits and substitutability is positive correlation. In the sale condition, the first phase, there is the negative correlation relationship between optimal output and substitutability, optimal output for substitutable perishable products is increased and then reduced with the increased of substitutability. The second phase, the optimal output of these two products is similar to rent durable goods, profits are influenced by substitutability and price elasticity. In the absolute durable condition, the optimal policy is to rent the durable goods completely. In the market which new and old durable goods are coexist, preference coefficient for consumers to new/old durable good has the inverse influence to the durable goods and substitutable perishable goods in the two different phases. The preference of consumers has the different influences to the profits at the different interval when the two products at constant substitutability have been produced.In the oligopoly market, there is one firm which produces durable goods and one firm produces perishable products, the rent proportion of durable goods is relevant with the durability in the absolute durable condition. If there are one firm which produces durable goods and two firms which produce perishable products on the market, the optimal policy for the durable goods is to rent completely in the absolute durable condition.