Pricing Strategies and Decisions in a Bertrand Competition with Markov Process

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

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.

Original languageEnglish
Title of host publicationProceedings - 2017 6th IIAI International Congress on Advanced Applied Informatics, IIAI-AAI 2017
EditorsKiyota Hashimoto, Naoki Fukuta, Tokuro Matsuo, Sachio Hirokawa, Masao Mori, Masao Mori
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages41-45
Number of pages5
ISBN (Electronic)9781538606216
DOIs
Publication statusPublished - 2017 Nov 15
Event6th IIAI International Congress on Advanced Applied Informatics, IIAI-AAI 2017 - Hamamatsu, Shizuoka, Japan
Duration: 2017 Jul 9 → …

Publication series

NameProceedings - 2017 6th IIAI International Congress on Advanced Applied Informatics, IIAI-AAI 2017

Other

Other6th IIAI International Congress on Advanced Applied Informatics, IIAI-AAI 2017
CountryJapan
CityHamamatsu, Shizuoka
Period17-07-09 → …

Fingerprint

Markov processes
Supply chains
Costs
Numerical analysis
Profitability
Data storage equipment
Pricing decisions
Markov process
Bertrand competition
Pricing strategy
Switching behavior
Equilibrium pricing
Profit
Purchase
Utility function
Resorts
Consumer perceptions
Supply chain
Market demand
Interaction

All Science Journal Classification (ASJC) codes

  • Artificial Intelligence
  • Computer Networks and Communications
  • Computer Science Applications
  • Information Systems
  • Information Systems and Management

Cite this

Wu, C-H. (2017). Pricing Strategies and Decisions in a Bertrand Competition with Markov Process. In K. Hashimoto, N. Fukuta, T. Matsuo, S. Hirokawa, M. Mori, & M. Mori (Eds.), Proceedings - 2017 6th IIAI International Congress on Advanced Applied Informatics, IIAI-AAI 2017 (pp. 41-45). [8113209] (Proceedings - 2017 6th IIAI International Congress on Advanced Applied Informatics, IIAI-AAI 2017). Institute of Electrical and Electronics Engineers Inc.. https://doi.org/10.1109/IIAI-AAI.2017.28
Wu, Cheng-Han. / Pricing Strategies and Decisions in a Bertrand Competition with Markov Process. Proceedings - 2017 6th IIAI International Congress on Advanced Applied Informatics, IIAI-AAI 2017. editor / Kiyota Hashimoto ; Naoki Fukuta ; Tokuro Matsuo ; Sachio Hirokawa ; Masao Mori ; Masao Mori. Institute of Electrical and Electronics Engineers Inc., 2017. pp. 41-45 (Proceedings - 2017 6th IIAI International Congress on Advanced Applied Informatics, IIAI-AAI 2017).
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Wu, C-H 2017, Pricing Strategies and Decisions in a Bertrand Competition with Markov Process. in K Hashimoto, N Fukuta, T Matsuo, S Hirokawa, M Mori & M Mori (eds), Proceedings - 2017 6th IIAI International Congress on Advanced Applied Informatics, IIAI-AAI 2017., 8113209, Proceedings - 2017 6th IIAI International Congress on Advanced Applied Informatics, IIAI-AAI 2017, Institute of Electrical and Electronics Engineers Inc., pp. 41-45, 6th IIAI International Congress on Advanced Applied Informatics, IIAI-AAI 2017, Hamamatsu, Shizuoka, Japan, 17-07-09. https://doi.org/10.1109/IIAI-AAI.2017.28

Pricing Strategies and Decisions in a Bertrand Competition with Markov Process. / Wu, Cheng-Han.

Proceedings - 2017 6th IIAI International Congress on Advanced Applied Informatics, IIAI-AAI 2017. ed. / Kiyota Hashimoto; Naoki Fukuta; Tokuro Matsuo; Sachio Hirokawa; Masao Mori; Masao Mori. Institute of Electrical and Electronics Engineers Inc., 2017. p. 41-45 8113209 (Proceedings - 2017 6th IIAI International Congress on Advanced Applied Informatics, IIAI-AAI 2017).

Research output: Chapter in Book/Report/Conference proceedingConference contribution

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Wu C-H. Pricing Strategies and Decisions in a Bertrand Competition with Markov Process. In Hashimoto K, Fukuta N, Matsuo T, Hirokawa S, Mori M, Mori M, editors, Proceedings - 2017 6th IIAI International Congress on Advanced Applied Informatics, IIAI-AAI 2017. Institute of Electrical and Electronics Engineers Inc. 2017. p. 41-45. 8113209. (Proceedings - 2017 6th IIAI International Congress on Advanced Applied Informatics, IIAI-AAI 2017). https://doi.org/10.1109/IIAI-AAI.2017.28