Homogeneous Product's Pricing Model Research Under Game Theory

The study of price competition has been an important element in the Economics. The phenomenon of the price competition is appearing in every walk of our life, which is more frequent these years in China. How the enterprises in the market build better rational price strategy need us to explore and research continuously, can not solely rely on the experience of corporate decision makers, it also need more theory guidance.In reality, they have arose very serious homogeneous phenomena in many industries, several large enterprises usually hold huge market shares, the differences of their products are very small, however, their pricing decisions have great impact on the whole industry. Each decision-making will lead to the reaction of other enterprises, so the best policy is built on the foundation of the other enterprises'decisions. Game Theory is a theory that is most widely and successfully applied in economic research in recent years. For such mutual influential issue of strategic decision, the game theory is more suitable analytical tool. In this paper, the theory and methodology of game theory is used, so as to study the pricing decision and balance issue of interdependent enterprises in oligopoly market, namely, game theory pricing research, and empirical analysis is conducted as well with the industries which produce homogeneous products.This paper first points out that the type of market structure can have the significant influence on the product's pricing strategy; Then it has analyzed the price formation mechanism in the oligopoly market emphatically, proposes that we may make price strategy based on Game Idea in oligopolistic market; Finally it explains the relative concepts of Game Theory in order to analysis detailed for posterior study.In the essential part of the article, it tries to derive pricing equilibrium with game theory paradigm under various circumstances. Types are classified taking into account the products are homogeneous, whether the variable cost per unit of the enterprises'products is the same, and the strategy is competitive or cooperative. From simple to complex layers of depth, it tries to explain the theory of game theory pricing.At last, on the basis of the above study, homogeneous products are taken as the objects to study empirically game theory pricing. After the introduction and fast-developing stage in several decades, the PC industry and air conditioner industry have showed the characteristics of an oligopoly structure. Large enterprises in PC industry and air conditioner industry are highly dependent on one another, so their pricing and output decision-making have dramatic influence on each other. Therefore, conducting empirical analysis to test game theory pricing model is very suitable in these industries. In consistent with the classification in the pricing theory section, the empirical part discussed the pricing strategy under homogeneous circumstances to test the effectiveness and practicality of the theoretical models put forward in the third chapter.