Abstract
A dynamic pricing game model for substitute products from two sellers with different customer choices was proposed, and potential customers were divided into three segments in the model: loyal customers to seller 1 who immediately purchase from seller 1 when they arrive, loyal customers to seller 2 who immediately purchase from seller 2 when they arrive, and customers with general preference for seller 1 and 2 who purchase from either seller with certain probabilities according to MNL model when they arrive. Then the existence of Nash equilibrium prices is proved, and a numerical experiment is developed to discuss the characteristics of Nash equilibrium prices.
| Original language | English |
|---|---|
| Pages (from-to) | 1069-1072 |
| Number of pages | 4 |
| Journal | Beijing Ligong Daxue Xuebao/Transaction of Beijing Institute of Technology |
| Volume | 34 |
| Issue number | 10 |
| Publication status | Published - 1 Oct 2014 |
Keywords
- Customer choice
- Dynamic pricing
- Substitute products