Research On Joint Strategies Of Advance-selling And Buy-back In Duopoly Game Model

This paper mainly studies the joint strategy advance selling and buy back under the duopoly game model.In recent years,competition in all walks of life has intensified.In order to occupy a place in the fierce market competition environment,sellers are actively looking for effective incentives to stimulate downstream customers to purchase corporate goods.Among them,sellers use a variety of marketing strategy to obtain more profits,such as return policy,advance selling strategy and so on.Advance selling strategy refers to the marketing strategy of vendors to allow consumers to order goods in advance before the official sale or normal sales period.However,under the advance selling strategy,consumers did not see the goods in the presale period,so the actual satisfaction with the goods is uncertain,which will make consumers bear certain risks.The risk of preordering may reduce the incentive for consumers to preorder.Therefore,if the sellers adopt a buy back strategy,consumer interests will be guaranteed,thus increasing the desire to preorder.The buy back strategy is not only more attractive to consumers,but also more attractive to sellers.This article focuses on the following aspects:First,based on the competition of the duopoly under uncertain market scale advance selling strategy model is put forward.The profit models are established to take the comparative study between the strategies of advance selling and no advance selling.The optimal advance selling prices and order quantities are obtained.It also find that two competitive sellers are not always optimal in advance selling.The unit cost of goods will affect decision of the seller's strategy.There is a set of nash equilibrium solutions for the two companies in the advance selling.Second,this paper presents a joint strategy model of advance selling and buy back under the condition of market size determination.The profit models of the duopoly are constructed to take the comparative study between the two strategies of a single advance selling and advance selling with buy back.It concludes that the two optimal decision variables and the optimal profits.The repurchase prices of a commodity will affect the decision of the sellers.When the prices of the commodity repurchase exceed a specific threshold and low,two competitive sellers are willing to implement the joint strategy.There are two sets of nash equilibrium solutions for the two strategies in duopoly game.Third,based on the competition of the duopoly under uncertain market scale,the joint strategy profit models of advance selling and buy back is proposed.It concludes that the two optimal decision variables and the optimal profits.There is a set of nash equilibrium solutions for the presale price discount coefficient at this point.After the unit cost of a commodity reaches a certain value,the joint strategy will earn more profits than the individual advance selling strategy.And it increase the optimal advance selling price and decrease the optimal ordering quantity.The difference and connection between the two joint strategies of advance selling and buy back are obtained by numerical study.Finally,this paper summarizes the whole text and puts forward some researchideas for improving the direction and the next step.