IDEAS home Printed from https://ideas.repec.org/a/hin/jnlmpe/8870747.html
   My bibliography  Save this article

Location-Price Game in a Dual-Circle Market with Different Demand Levels

Author

Listed:
  • Xiaofeng Chen
  • Qiankun Song
  • Luqing Rong
  • Zhenjiang Zhao

Abstract

This paper researches a location-price game in a dual-circle market system, where two circular markets are interconnected with different demand levels. Based on the Bertrand and Salop models, a double intersecting circle model is established for a dual-circle market system in which two players (firms) develop a spatial game under price competition. By a two-stage (location-then-price) structure and backward induction approach, the existence of price and location equilibrium outcomes is obtained for the location game. Furthermore, by Ferrari method for quartic equation, the location equilibrium is presented by algebraic expression, which directly reflects the relationship between the equilibrium position and the proportion factor of demand levels. Finally, an algorithm is designed to simulate the game process of two players in the dual-circle market and simulation results show that two players almost reach the equilibrium positions obtained by theory, wherever their initial positions are.

Suggested Citation

  • Xiaofeng Chen & Qiankun Song & Luqing Rong & Zhenjiang Zhao, 2021. "Location-Price Game in a Dual-Circle Market with Different Demand Levels," Mathematical Problems in Engineering, Hindawi, vol. 2021, pages 1-15, March.
    • Handle: RePEc:hin:jnlmpe:8870747
    DOI: 10.1155/2021/8870747
    as

    Download full text from publisher

    File URL: http://downloads.hindawi.com/journals/MPE/2021/8870747.pdf
    Download Restriction: no
    File URL: http://downloads.hindawi.com/journals/MPE/2021/8870747.xml
    Download Restriction: no
    File URL: https://libkey.io/10.1155/2021/8870747?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hin:jnlmpe:8870747. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mohamed Abdelhakeem (email available below). General contact details of provider: https://www.hindawi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.