Research On The Effect Of Used Goods Market On Monopoly Manufacturers

Durables refer to the goods that can be reused or can be used continuously a number of times under normal circumstances, and when used after a period of time, it still have some uses, thus forming a used goods market when it comes to circulation, such as used-car market and used-phone market and so on. The existing research mainly focused on the effect of a single type of used goods market on member enterprise of supply chain. However,study on the effect of competition between a variety of used goods markets to supply chain is scarce. So this paper research on the effect of multiple used goods markets on monopoly manufactures.Firstly, this paper research on the effect of p2p used goods market on monopoly manufacturers. The results show that both the quality and improvement and market growth of durables are little with the formation of p2p used goods market, and only when some purchasers in first period upgrade their products in second period will it occurs. In this situation, It shows that it is good for durables enterprises but bad for new products purchaser. In addition, the formation of p2p used goods market encourages enterprises to improve durability of durables rather than reduce durability for higher profits, but it discourages enterprises from upgrading new products in second period.Secondly, offline third-party secondary products collection enterprises may enter into used goods markets to get marginal benefits due to the existence of P2P used goods market. To research whether third-party potential entrant should enter into used goods market and its effect on original market if they enter, this paper respectively build two-phase dynamic game model of monopolist under two conditions that potential entrant enters into used goods market and does not enter into used goods market, thus getting respective optimal decision value. Then we make comparative analysis. The results show that:That potential entrant enters into used goods market lowers new product price of monopolistic manufacturer in all two phases, boosts profit of monopolistic manufacturer in the first phase, lowers profit in the second phase, as well as lowers total profit of monopolist; That potential entrant enters into used goods market has incentive effects on new product upgrade of monopolist under parameter of fixed investment cost for upgrade.Finally, the monopoly itself may enter into used goods market due to the existence of P2P used goods market. This paper research the effect of monopolies entered into used goods market on pricing for products. The results show that:If the monopolies itself enter into the used goods market. The optimal retail price of two cycles of new products will go down, will increase the extent of price increase from periods 1 to 2 will increase. The price of the old products on P2P used goods market will increase. Besides, the monopolist entered into used goods market will get more share of market. The more acceptance of the second-hand products to consumers, the more market growth of the monopolist. Different from the third-party second-hand products collection enterprises enter into used goods market, it discourages monopolists from upgrading new products in second period.