The Research On Telecommunications’ Competition Based On Network Externalities

Along with the continuous deepening of the reform of our country’s economy and the continuous development of national economy, China’s telecommunications industry is also constantly develop and grow, the proportion of output value of GDP in the country is becoming more and more big, until the end of2013phone users up to1.390308billion in China, Internet users reached564million. Telecommunications infrastructure sex made it for the sake of social reproduction and the whole social activities of common external conditions, telecommunications industry a wide range of external economic nature allows it to play a large role on the development of national economy.In view of the practical problems existing in the Chinese telecom market, this paper of oligarchs telecom market competition, using the traditional game theory, evolutionary game, mathematical economics and industrial economics theory and method, study the problems of the telecom manufacturers pricing model. Separately on the network under the effect of oligarchs telecom call price market structure evolution model characterization and numerical simulation analysis and adjustment of telecom manufacturers connectivity access pricing is analyzed.The first chapter, the analysis of a large number of relevant literature, summarized on the basis of competition of telecom enterprises and analyzes the management decision problem, determine the focus in the study of this article, has been clear about the research train of thought, design the research framework of this article.The second chapter, the paper introduces the basic concept and model of game theory and evolutionary game theory in the research and development, the paper also gives the basic concept of network externalities and telecommunications vendors connectivity, and provides theoretical basis for later analysis. The third chapter, this paper discusses the two telecom manufacturers use the network and network cost pricing under different competition strategy adjustment problems, unlike previous literature does not divide telecom manufacturers pricing type or just discussed with a case to study the telecom manufacturers market competition, this study is to telecom manufacturers’ pricing is divided into two types, that is, the network and network, at the same time introduce the external characteristic parameters to telecommunications manufacturers competition under the overall framework of analysis and discussion.The fourth chapter, based on the previous chapter, on the basis of using the evolutionary game theory as the analysis tool, explore the long-term evolution of competition game model between telecommunication manufacturers. In evolutionary game models is given based on the bounded rationality of telecom manufacturers pricing analysis, market the long-term evolution of the results will be telecom manufacturers adopt double cost model for pricing at the same time.The fifth chapter, the discussion is based on consumers consider under network externality, network connectivity cause of telecom manufacturers.The sixth chapter, the telecom network interconnection among firms, and the compatibility of the telecommunication products make processing of endogenous, discussed based on considerations of network externalities, connectivity access pricing analysis of telecom manufacturers.Finally is the conclusion part, the main work and contributions of this article is summarized, at the same time, this study limitations and future work direction is prospected.