Research on the Defense Equilibrium Prices' Calculation of Compatibility about Network Products

Abstract

Compatibility is very important to the production and marketing of the network products .The thesis creates a general model of duopoly compatibility ,and calculates the defense equilibrium prices, the profits of manufacturers, the utility of consumers and the social welfare. Through compatibility of three special models which are complete incompatibility model's calculations and conclusions , complete compatibility model's calculations and conclusions and one-way compatibility model's calculations, we conclude that compatibility is how to affect the defense equilibrium prices, the profits of manufacturers, the utility of consumers and the social welfare. Our conclusion is as follows : (1) from the production of manufacturers, producing compatible machines get larger profits than incompatible machines. (2)From the consumers, producing incompatible machines get more utilities than compatible machines. (3) From the social welfare, producing compatible machines get larger welfares than incompatible machines.