Dynamic pricing and competitive time-to-market strategy of new product launch under a multistage duopoly

Cheng Han Wu, Jing Yi Lai

研究成果: Article

1 引文 斯高帕斯(Scopus)

摘要

Due to frequent changes in consumer tastes, manufacturers continuously introduce new products to meet the desires of consumers. As a result, product launching strategies and pricing decisions have a considerable impact on a firm's profits, especially for short-life-cycle products. This study considers pricing competition in a multistage game between two asymmetric firms and examines three scenarios that are developed based on the firms’ product launching strategies under a single-product policy. Specifically, the firms may adopt simultaneous launching strategies and interact with each other in a two-stage game, or they may introduce their new products earlier or later than their rival under a three-stage interaction. We derive the firms’ equilibrium pricing decisions in a dynamic programming approach and analyze the firms’ equilibrium pricing behavior. Furthermore, we investigate the parametric effects on the firms’ profitabilities, performances, and preferences with regard to the product launching strategies. Introducing a new product later than the rival is often a dominant strategy for firms. However, in some cases, the firms may change their preference to launch their new product earlier than their rival to allow for a longer sales period.

原文English
頁(從 - 到)138-152
頁數15
期刊European Journal of Operational Research
277
發行號1
DOIs
出版狀態Published - 2019 八月 16

All Science Journal Classification (ASJC) codes

  • Computer Science(all)
  • Modelling and Simulation
  • Management Science and Operations Research
  • Information Systems and Management

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