Apply And Research Of Duopoly Under Complete Information

Facing the rapid development of economy,there is a balance and restriction to the rapid development of the economy,as early as 1970 s,the developed countries in the West had already implemented governmental control or state ownership to the traditional natural monopoly industries.After China's reform and opening to the outside world,the occurrence of monopoly between industries has led to unfair economic competition and market rejection,so the monopoly situation must be reformed and rectified.In view of the above problems,based on the basic theory of game theory,this paper analyzes many problems existing in the market,applying monopoly theory to analyze firm's market behavior under oligopoly,firstly,the market competition model and equilibrium results are obtained under different conditions.The equilibrium results are not only instructive to the economic development of major manufacturers in the market,it helps the government to control the economy macroscopically.Combined with the economic behavior and industrial characteristics of the major manufacturers,Secondly,the establishment of monopoly model,this paper discusses the economic behaviors of the two oligarchs on the line and the final equilibrium of the industry,it provides a theoretical basis for the pricing strategy and production decision of the market.This paper is divided into four parts:The first part introduces the game theory and the theoretical knowledge involved,it provides a theoretical basis for the model construction and equilibrium solution of the model,secondly,it introduces the division of monopoly types,then it introduces the development of game theory and the acquisition of Nobel prize,finally,the basic concepts of game theory and the classification of game types are introduced.The second part improves the two most important and basic models in game theory:Cournot model and Bertrand model,and get the balanced solution.Thetraditional Cournot model only discusses the case of zero cost,firstly,the Cournot model is improved,build up a function that is proportional to the quality of the product by all costs,such as labor,logistics,and rent,secondly,the Cournot model is solved by equilibrium.The traditional bethe model is a linear model of yield,The nonlinear model of price and output is established,then the equilibrium solution is carried out.The third part considers the online and offline as the two major oligarch in the market,first,the equilibrium results are obtained by the improved Cournot model and the Bethe model,secondly,the improved Cournot model is solved dynamically,then combine the winning matrix,the improved bethe model is solved using a mixed strategy.The fourth part uses MATLAB software for data analysis,the online and offline earnings of the two oligarchs to do the data simulation experiment.