The impact of bounded rational differences in consumers on suppliers’ product pricing: A two-level population game model

Affected by the difference of bounded rationality, consumers will adopt different methods such as pure imitation or probabilistic imitation when learning advantage strategies, and have an important impact on the supplier’s product pricing strategy. Based on population game modeling and simulation technology, this paper analyzes suppliers’ optimal product prices under two forms of bounded rationality, pure imitation and probabilistic imitation, and further discusses the impact of product costs and transaction costs on product prices. The research results show that: 1) compared with pure imitation, the probabilistic imitation of consumers will prompt suppliers to give higher product prices; 2) the differentiation of supplier product costs and the decline of market transaction costs will depress product prices. The research conclusions are of great significance for guiding consumers to make reasonable decisions and improving consumer welfare.