Abstract

Taking into account enterprises’ investment on commodity quality and advertisements as important factors that affect sales volume, and the R&D activities are effective measures to reduce production costs and improve commodity competitiveness. Based on the game theory, this paper establishes the price game model among enterprises, and analyzes the relationship of relevant parameters under different competition modes by using computer simulation technology. The simulation results show that the two enterprises will obtain relatively high sales volume and profits in the Stackelberg competition mode, but the absorptive capacity makes the coordination strategy of the R&D stage become unstable. The non-coordination strategy can not only effectively stimulate enterprises to expand the scale of R&D investment to further reduce the cost of production, but also has a positive effect on the follower enterprises in improving sales volume and profits.

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