Nonlinear Price Game Model And Complexity In Chinese Steel Market

Based on the research at home and abroad, this dissertation uses management theory, economic theory and nonlinear dynamics theory to analyze the complexity of price competition in Chinese cold-rolled steel market and pipeline steel market. Firstly, Bertrand models are established which are based on non-linear demand functions. Secondly, the dissertation uses complexity theory to get local stable region of Nash equilibrium point and uses numerical simulation to describe the complex behavior of dynamic systems, such as period doubling bifurcations, chaos attractors, and sensitive dependence on initial values and so on. Finally, parameters adjustment control method is adopted to control each chaotic market and makes the chaotic state of price stable at the equilibrium state. The analysis and results are valuable for Chinese steel market.1 This dissertation introduces game theory and nonlinear dynamic theory into the study of pricing strategy in Chinese cold-rolled steel market and pipeline market which are typical oligopoly. Because their situation of market competition is different, the price game models of cold-rolled steel market and pipeline market are established respectively. Parameters of price adjustment speed are introduced to simulate the process of price evolution.2 This dissertation establishes duopoly and triopoly price game models in cold rolled steel market and analyzes the complexity of system. Due to relationship between steel price and demand is not simply linear, the dissertation establishes price game models on the basis of nonlinear demand functions which are different from the previous research. The models are closer to reality. Moreover, they extend the form of discrete nonlinear dynamic systems in theory.3 When Shougang Group just enters into the cold rolled steel market, the demand relationship structure of triopoly will be different. In addition, three companies usually grasp asymmetric information and their ability to process information is not the same. Therefore, this dissertation proposes a triopoly game model with different rationality and different structure of demand functions which can describe triopoly price competition when Shougang Group just enters into cold rolled steel market. It is closer to reality. Then on the basis of the model the dissertation analyzes the complexity of triopoly game process.4 Taking into account the measurable differences in brand of products and performance of pipeline project between Wuhan Iron and Steel group and Baosteel group, the dissertation establishes demand functions. On this basis, duopoly price game model is built. It is of good theoretical and practical value. In addition, the dissertation looks ahead triopoly game and builds triopoly price game models.