Research On Pricing Strategy For Perishable Products Based On Evolutionary Game

In recent years, pricing strategy for perishable products persecutes the enterprise and the retailer continuously, and it also attracts the experts’attention. With the development of the market demand increasing and diversified, the range of perishable products has extended persistently. The pricing strategy for perishable products depends on not only the cost of the products, but also relates to the market demand, based on the decreasing value features of the perishable products. Studying on the bounded rationality of the market agents has been an irresistible trend of study on the pricing strategy for perishable products.This paper describes the bounded rationality of the market agents from two aspects:the limited cognition and utility preference. It analysis the strategies of the retailer and the customer based on the bounded rationality. On this basis, this paper analysis the evolutionary stable strategy of the dynamic game by adopting the theory of the evolutionary game. Combining with the equilibrium path of evolutionary, it provides the valuable pricing strategy of the perishable products for the retailers.This paper studies on the pricing strategy and optimizes the pricing for the perishable products based on the evolutionary game theory, the main research content includes:(1) Sorting out the relevant references of bounded rationality and evolutionary game theory; Clarify the main reasons of bounded rationality are limited cognition and utility preference. At the same time, analysis that using evolutionary game theory to solve pricing strategy for perishable products is feasible and necessary;(2) Analysis the bounded rationality of the market agents and formulating the strategies based on the features of the bounded rationality of the market agents. Describing the bounded rationality of the retailers and the customers from the aspects of the limited cognition and the utility preference mathematically; Analysis the dynamics of the strategies when the retailers and the customers can perfect their limited cognition persistently;(3) Analysis the dynamic process of the evolutionary game in considering the bounded rationality of the retailers and the customers. Then use the replicator dynamics function to establish the equation to describe the features of the bounded rationality between the retailers and the customers. And changing proportion rate of the game players in choosing the appointed strategy which expressed by the replicator dynamics equation. Deciding by this rate of change, it will get the route of the evolutionary equilibrium and the evolutionary stable strategy, which can provide the valued references for retailers;(4) Finally the example demonstrated the effectiveness of the evolutionary analysis method, and confirmed the relationship between evolutionary stable strategy and pricing strategy.