Study On Pricing Strategies Of Oligopoly Based On The Game Theory

Price competition is an important means for enterprises to participate in market competition, and the pricing strategy will influence the success or failure of price competition. In the oligopoly market, due to the homogeneity of products,the right pricing strategy for enterprise to win competition is particularly important.How to make the price strategy of enterprises, not only depend on the decision of maker’s experience,but also needs the guidance of theory.And the game theory can provide an effective tool for enterprises to choose the correct pricing strategy.In this paper, with the pricing strategy of oligopoly enterprises as the main theme, with the game theory as the basis, with Coca Cola and Pepsi oligarch competition as an example,on the basis of analysis of influencing factors on the pricing strategy of oligopoly, using the method of the design of Game Theory the analysis of mathematical,analyse the following different hypothesis of absence of oligopoly pricing strategy.Firstly, based on the assumption of symmetric infromation and the same duopoly marginal cost, to study the different situation of their respectice pricing and the pricing together.Compare the profit under two kinds of conditions.Reach the pricing strategy of the duopoly enterprises.Secondly, based on the assumption of symmetric infromation and the different duopoly marginal cost,study the high and the low marginal cost of enterprise pricing strategy.Reach the best pricing strategy of the duopoly enterprises. Third,based on the ssumption of symmetric infromation and the different duopoly marginal cost,and consider the consumer preference case,study the best buy-point of the consumers.And study how the enterprise to position their own product and determine the correct price strategy.Fourth, on the asymmetric information conditions, to study the relationship between the pricing strategy and its marginal cost, the market average marginal cost and the average market price. Reaching the best pricing strategy for enterprises under the condition of oligopoly.Fifth, on the asymmetric information conditions of duopoly, study the high and the low marginal cost of enterprises hidden information of themselves that make the influence for their competitions.Analyzes how information affects the enterprise pricing strategy and the importance of information,reaching the pricing strategy in this situation.Sixth, the information asymmetry duopoly conditions,study the relationship between the pricing strategy and its marginal cost, the market average marginal cost, average market prices and information,obtained the pricing strategy under this condition.Based on the different conditions of oligopoly pricing strategy,study the two oligopolies’competition of Coca Cola and Pepsi. Analyse the development situation of current Chinese beverage market, as well as the Coca Cola and Pepsi in China.Study their pricing strategies in the end.Hope that through this study, finding the effects of oligopoly pricing factors,have a clear understanding of oligopoly price competition and pricing strategy on the different states,and can reach the equilibrium pricing strategy of the enterprises under different conditions, in order to provide new reference and theoretical for existing enterprises.