Price Model And Its Analysis For Telecom Enterprises In Oligopoly Market With Consume's Switching Costs

With the arrival of the service economy, the competition among service industries have been intensifying competition. In 2008, announcement on deepen reform of telecom system, issued jointly by industry and the ministry of information and the national development and reform commission and ministry of finance, the notice make China's six major telecom operators into three major telecom operators, that is China Unicom\China telecom and China Mobile. Making higher profits or expanding market share, is the key point of telecom business to enhance competitive advantage, and pricing strategies are critical factors. At the same time consumer switching costs restricts its consumption choice in an extent, and has an influence on pricing strategy of telecom enterprises. Domestic and overseas scholars have been made deepen research on switching cost influence on telecom consumer market, but made few research on switching cost influence on telecom enterprises, especially for telecom enterprise pricing research.Based on the above research background, this paper construct price model of telecom enterprises with switching cost from based on the perspective of the cost of building telecom companies. Meanwhile construction of Hamiltonian and get the solution of the function values. Numerical simulation analysis with software Matlab. This paper analyzes price competition strategy of the duopoly telecom market and three oligarch telecom market, Display intuitivly and clearly different pricing strategy under different condition of competition in telecom market, and transfer cost influence on the sensitivity to telecom enterprise pricing.The analysis showed that: 1)In telecom market, Consumer locked in another enterprises from transfer purchase is a process from instability competition to a stable state; 2) In the telecom market ,Consumer will transfer a relative lower price telecom enterprises from a relative higher one. Telecom enterprises can reduce price to attract consumer to transfer purchase, and it has better lock-in effect under higher switching cost, equilibrium price is higher. So the transfer of low-cost consumers should develop low-cost telecom enterprise, while the transfer of high-cost consumers should develop high-cost telecom enterprises;3)The price of telecom enterprises increase with transfer cost increase, in other word, the price of telecom enterprises is in a direct ratio with transfer cost. However, the increased speed of price slow down with increase of switching cost. The lower switching cost, the higher speed of price increase. Conversely, the higher switching cost, the lower speed of price fall in telecom enterprise.