TY - GEN
T1 - Pricing Strategies and Decisions in a Bertrand Competition with Markov Process
AU - Wu, Cheng Han
N1 - Funding Information:
This research was supported by the National Science Council, Taiwan, R.O.C. under Grant MOST 103-2221-E-224-063 and MOST 105-2221-E-224-034
Publisher Copyright:
© 2017 IEEE.
PY - 2017/11/15
Y1 - 2017/11/15
N2 - In this paper, we consider that consumers have memory about their previous purchases, and thus consumers switching behavior is associated with the gap of consumer perception. In such an environment, we investigate the interaction of the periodically pricing strategies between a brand manufacturer and a generic manufacturer, who sell homogeneous consumable products in the market, in a two-period supply chain. We formulate consumers Markovian switching behavior by using utility functions to obtain market demand for each manufacturer. Subsequently, we derive the manufacturers equilibrium pricing decisions and profits. Then, we resort to the numerical analysis to explore the parametric effects on the equilibrium results in order to provide the managerial insights.
AB - In this paper, we consider that consumers have memory about their previous purchases, and thus consumers switching behavior is associated with the gap of consumer perception. In such an environment, we investigate the interaction of the periodically pricing strategies between a brand manufacturer and a generic manufacturer, who sell homogeneous consumable products in the market, in a two-period supply chain. We formulate consumers Markovian switching behavior by using utility functions to obtain market demand for each manufacturer. Subsequently, we derive the manufacturers equilibrium pricing decisions and profits. Then, we resort to the numerical analysis to explore the parametric effects on the equilibrium results in order to provide the managerial insights.
UR - http://www.scopus.com/inward/record.url?scp=85040557802&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=85040557802&partnerID=8YFLogxK
U2 - 10.1109/IIAI-AAI.2017.28
DO - 10.1109/IIAI-AAI.2017.28
M3 - Conference contribution
AN - SCOPUS:85040557802
T3 - Proceedings - 2017 6th IIAI International Congress on Advanced Applied Informatics, IIAI-AAI 2017
SP - 41
EP - 45
BT - Proceedings - 2017 6th IIAI International Congress on Advanced Applied Informatics, IIAI-AAI 2017
A2 - Hashimoto, Kiyota
A2 - Fukuta, Naoki
A2 - Matsuo, Tokuro
A2 - Hirokawa, Sachio
A2 - Mori, Masao
A2 - Mori, Masao
PB - Institute of Electrical and Electronics Engineers Inc.
T2 - 6th IIAI International Congress on Advanced Applied Informatics, IIAI-AAI 2017
Y2 - 9 July 2017
ER -