Theoretical And Empirical Study On The Game Pricing Of Enterprise’s Products Under Open System

Product pricing has long been one of the core issues in economic theory and marketing researches. Not only does it involve both buyers and sellers’ interests, but also it is an important mean to allocate social resources. Market environment being increasingly complicated, more and more factors are involved in product pricing. Targeting at product pricing in market economy environment, this paper applies game theory on product pricing problem of open system enterprises that are different in cost and expense. This paper aims to establish complete product pricing theory system and method system, and it also uses empirical study to analyze the difference between theoretic pricing and practical pricing.This dissertation mainly studies the following issues:(1) This thesis reviews the related theories and literatures of product pricing. It draws conclusions as there is no unified economic scale, enterprises’ production costs are different, marketing expense could influence pricing and etc. it also sums up deficiencies of game theory pricing research as below:①the hypothesis that all enterprises have the same product cost has restricted the pricing analysis of enterprises with different cost;②it hasn’t consider marketing expense’s influence on pricing, and it’s the embodiment of production concept;③it hasn’t considered potential competition’s influence on pricing, and it reflects the neglect of current market’s open characteristic.(2) This thesis studies the game theory pricing of the enterprises with same cost. It mainly studies cooperative game theory pricing and open system game theory pricing and gives the corresponding game theory pricing model. It draws conclusions as below:①comparing with competitive game, cooperative game has characteristics as low yield, high price and fat profit;②price information could reduce cooperative strategy risk in a closed system;③making price according to critical price model could help enterprise maintain a comparatively high profit level.(3) This thesis studies the game theory pricing of the enterprises with different cost. It mainly studies master-slave competitive game theory pricing and cooperative game’s output distribution problem. This paper establishes master-slave competitive game theory pricing model for two and three kinds of enterprise, and it also proves that the cooperative game’s profit of enterprises with different cost is more than the competitive game’s profit. It draws conclusions as below:①low-cost large enterprise has the yield advantage in multi-enterprises competition;②critical price is related to new entrant enterprise’s target profit, fixed cost and entering cost.(4) This thesis studies the game theory pricing while considering marketing expense. It respectively studies the marketing expense’s influence on the three kinds of game theory pricing introduced above. This paper also gives out enterprise’s new total cost function and the corresponding pricing model which considers marketing expense. It draws conclusions as below:①the marketing expense coefficient influences the optimal price by amplifying the unit variable cost’s effect and it has a positive relationship with the optimal price;②the marketing expense coefficient influences the critical price by amplifying target profit, fixed cost and entering cost’s effect. It also reversely influences critical price by changing product distribution coefficient.(5) This thesis carries out empirical study. It analyzes air conditioner industry’s market structure and several enterprises’production cost and marketing expense. It uses EVIEWS5 software to establish air conditioner’s market demand function during 1998 to 2005。It also calculates theoretical prices of competitive game and cooperative game in air conditioner industry and compares them with practical price. It draws conclusions as below:①the air conditioner industry shows oligopoly market character;②the air conditioner enterprise is in status of cooperative game before 2000 and in status of competitive game after it;③the air conditioner’s practical price is much higher than critical price, and it’s one of the main causes that initiated price war of air conditioner industry in late 2000.At last, this thesis gives the research conclusions and the main contributions, and it also points out research’s deficiencies and further research direction.