Complexity and Application of Tobacco Manufacturer Pricing Game considering Market Segments

This paper considers price as a strategy using two methods of market segmentation through game theory based on the collected data of several typical cities in Shandong province. Three oligarchs are discussed to analyze the complexity of the market in tobacco system. The effect of different factors o...

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Main Authors: Shubing Guo, Junhai Ma, Xueli Zhan
Format: Article
Language:English
Published: Wiley 2017-01-01
Series:Discrete Dynamics in Nature and Society
Online Access:http://dx.doi.org/10.1155/2017/6701286
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author Shubing Guo
Junhai Ma
Xueli Zhan
author_facet Shubing Guo
Junhai Ma
Xueli Zhan
author_sort Shubing Guo
collection DOAJ
description This paper considers price as a strategy using two methods of market segmentation through game theory based on the collected data of several typical cities in Shandong province. Three oligarchs are discussed to analyze the complexity of the market in tobacco system. The effect of different factors on the equilibrium price of Nash equilibrium is discussed. What is more, the variation of parameters drives the system to change to uncertain status, even to bifurcation or chaos. We also discuss the model under normal circumstances, when the three parties jointly take chaos control measures, and its impact on the system. Finally, we clarify chaos control of economic significance. The results indicate that only reasonable pricing strategy is a critical point to achieve maximized profit and maintain orderly operation at the same time, which is a constructive suggestion for tobacco companies’ operational strategy.
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language English
publishDate 2017-01-01
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record_format Article
series Discrete Dynamics in Nature and Society
spelling doaj-art-943cb02e67bf4fb09a99bdcfe8d1a2052025-08-20T02:09:47ZengWileyDiscrete Dynamics in Nature and Society1026-02261607-887X2017-01-01201710.1155/2017/67012866701286Complexity and Application of Tobacco Manufacturer Pricing Game considering Market SegmentsShubing Guo0Junhai Ma1Xueli Zhan2Group of Nonlinear Dynamics and Chaos, College of Management and Economics, Tianjin University, Tianjin 300072, ChinaGroup of Nonlinear Dynamics and Chaos, College of Management and Economics, Tianjin University, Tianjin 300072, ChinaSchool of Economics, Beijing Wuzi University, Beijing 101149, ChinaThis paper considers price as a strategy using two methods of market segmentation through game theory based on the collected data of several typical cities in Shandong province. Three oligarchs are discussed to analyze the complexity of the market in tobacco system. The effect of different factors on the equilibrium price of Nash equilibrium is discussed. What is more, the variation of parameters drives the system to change to uncertain status, even to bifurcation or chaos. We also discuss the model under normal circumstances, when the three parties jointly take chaos control measures, and its impact on the system. Finally, we clarify chaos control of economic significance. The results indicate that only reasonable pricing strategy is a critical point to achieve maximized profit and maintain orderly operation at the same time, which is a constructive suggestion for tobacco companies’ operational strategy.http://dx.doi.org/10.1155/2017/6701286
spellingShingle Shubing Guo
Junhai Ma
Xueli Zhan
Complexity and Application of Tobacco Manufacturer Pricing Game considering Market Segments
Discrete Dynamics in Nature and Society
title Complexity and Application of Tobacco Manufacturer Pricing Game considering Market Segments
title_full Complexity and Application of Tobacco Manufacturer Pricing Game considering Market Segments
title_fullStr Complexity and Application of Tobacco Manufacturer Pricing Game considering Market Segments
title_full_unstemmed Complexity and Application of Tobacco Manufacturer Pricing Game considering Market Segments
title_short Complexity and Application of Tobacco Manufacturer Pricing Game considering Market Segments
title_sort complexity and application of tobacco manufacturer pricing game considering market segments
url http://dx.doi.org/10.1155/2017/6701286
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AT junhaima complexityandapplicationoftobaccomanufacturerpricinggameconsideringmarketsegments
AT xuelizhan complexityandapplicationoftobaccomanufacturerpricinggameconsideringmarketsegments