The Research Of Online Retail Market Price Discrepancy Based On Bertrand

With the rapid development of computer and network technology, and thetransformation of the people consumption idea, network is becoming a win-winmarketing of manufacturers, dealers and consumers. Therefore, study the characteristicsof the online retail market price, For online retailers make the right online retailstrategies to enhance market is undoubtedly a very significant effect.In general view, lower information search costs and price transparency, onlineretailers will tend to friction between the perfectly competitive market.But, in recentyears, a number of empirical studies found that the price difference between onlineretailers did not significantly reduce.Thus,this paper will take a theoretical model andempirical study to analysis the price difference between the online retail market. Theresults showed that the price discrepancy between the retail network is persistent;under conditions of reduced search costs, online retailers can be differentiated price byconsumers attention and brand sensitivity.Firstly, the paper intends the development history of online retail market and therelationship between the network consumers and sellers. The retail ma rket factors onthe network, the online retail market price.Illustrates the network characteristics of theretail market commodity prices and price strategy.Then, on the basis of the Nashequilibrium of game theory model and Bertrand model, the online reta il market pricedifference analysis model is established, and analyzes the changes in consumerattention under the condition of fixed and under the condition of the price difference.Investigate the price difference model price rule in pure strategy Nash e quilibrium andmixed strategy Nash equilibrium. Discuss consumer attention and prices at thedifferent stages of price rule.Finally, the model examples of system design isestablished.Instance validation and analysis results show that the network retail market pricedifference analysis model is effective to achieve the anticipated target. The conclusionof the right price strategy for online retailers provide the guidance of theory andpractice.