Abstract
By comparing Cournot model and Stackelberg model under complete information market and Cournot model under incomplete information market, this paper analyzes the impact that manufacturer choose simultaneous or sequential games when determining the amount of output as well as the production and marketing strategy to maximize the profit of the manufacturers in the oligopoly market. A specific analysis is also conducted according to Gree air-conditioning manufacturer’s data.
Highlights
In 2019, b oth t he e xport s cale of t he a ir-conditioning market an d t he d emand of domestic m arket d ecreased
When Gree is a high-cost firm, G ree air-conditioning pr ofit is 1,341,629.93 yua n and M idea air-conditioning profit i s 1, 091,642.98 y uan whereas w hen G ree i s a l ow-cost fi rm, G ree air-conditioning pr ofit i s 1, 990,336.61 y uan a nd Mi dea air-conditioning profit is 1,128,528.89 yuan
When t he ol igopoly m arket i s a c omplete i nformation market, firms should use their brand influence to become the l eader o f the m arket as much as possible an d decide their own amount of output before other firms
Summary
In 2019, b oth t he e xport s cale of t he a ir-conditioning market an d t he d emand of domestic m arket d ecreased. O n N ovember 1 1, 2019, G ree E lectric l aunched a profit-sharing activity, starting the third obvious price war in the air-conditioning market [6]. The air-conditioning market, f alls into a p rice w ar a gain an d t he l eading c ompanies s eize t he opportunity t o gr ab m arket share by us ing t heir br and influence.
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