Applied Research Of The Oligopoly Game Model In Insurance Market

China has resumed the insurance business, the number of insurance company andinsurance product is keeping increasing because of the increased demand of insuranceproducts, so the competition is becoming more and more intense. There has fewdifferences among all insurance companies’ products, the primary means ofcompetition is price competition. In the particular situation, this paper bases on theexisting studies of domestic and foreign, adds some improvement and innovation onthe Bertrand model, applies game theory and nonlinear dynamic theory to constitute adifferential model with dynamic price game in the insurance market. It alsotheoretically analyzes the model and proposes the practical significance of the model.The main content of this dissertation is as follows:1. This paper bases on the background of insurance market, constitutes a duopolymodel of dynamic price game. Many works of output competition of Cournot modelhave done, here the study is bases on Bertrand model, adds some improvement andbounded rationality, constitutes a differential model of price game. This paperinvestigates the stability of equilibria points with nonlinear dynamic theory andstudies the influences of delay parameter and other parameters in the system bynumerical simulation. The theoretical sustainment is provided for the duopoly game.2. Constitute a triopoly model of price game bases on bounded rationality andpropose one is an adaptive player, so the model has better practical meaning. Itinvestigates the stability of equilibria points with nonlinear dynamic theory andstudies the influences of delay parameter and the adjustment speed of price bynumerical simulation. The theoretical sustainment is provided for the triopoly game.3. Combine the above two sections, then constitute a triopoly model of pricegame with heterogeneous rationality. It studies the stability of the system based on thetheoretical analysis and numerical simulation. The practical meaning is analyzed andthe theoretical warranty is provided for the triopoly price game and the stabledevelopment of the insurance market.The findings of this research will help China’s insurance market develop well. Onthe basis of the above research, we can know the ways to improve the ability ofinsurance companies’ competition and make the insurance market stable. Therefore, the insurance market will have a health and stable development in the future. It alsoprovides a theoretical basis for insurance company making competitive strategy.