Research on a Triopoly Dynamic Game with Free Market and Bundling Market in the Chinese Telecom Industry

Based on the real situation of telecom industry in China, we establish a triopoly game model, which includes two competitive telecom firms and their correlative corporation which produces the complementary product. Both free market and bundling market will be concerned in this dynamic model. Moreove...

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Main Authors: Junhai Ma, Tiantong Xu, Wandong Lou
Format: Article
Language:English
Published: Wiley 2018-01-01
Series:Discrete Dynamics in Nature and Society
Online Access:http://dx.doi.org/10.1155/2018/5720392
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author Junhai Ma
Tiantong Xu
Wandong Lou
author_facet Junhai Ma
Tiantong Xu
Wandong Lou
author_sort Junhai Ma
collection DOAJ
description Based on the real situation of telecom industry in China, we establish a triopoly game model, which includes two competitive telecom firms and their correlative corporation which produces the complementary product. Both free market and bundling market will be concerned in this dynamic model. Moreover, we consider a one-to-many bundling way instead of two complementary products in terms of the proportion of one to one in a bundling product. By numerical simulation, we find that stable space will decrease and decision chaos appears when the degree of the competition becomes fierce between the two competitive telecom firms. Besides, increasing the amount of bundling services provided by a telecom firm can lead to different impacts on the prices of the three firms investigated. This paper enriches the decision-making for the strategy of bundling pricing and will be valuable for the telecom operators.
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publisher Wiley
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series Discrete Dynamics in Nature and Society
spelling doaj-art-a5ade688bc24413baf9a600fdfd22da02025-02-03T06:11:30ZengWileyDiscrete Dynamics in Nature and Society1026-02261607-887X2018-01-01201810.1155/2018/57203925720392Research on a Triopoly Dynamic Game with Free Market and Bundling Market in the Chinese Telecom IndustryJunhai Ma0Tiantong Xu1Wandong Lou2College of Management and Economics, Tianjin University, No. 92, WeiJin Road, NanKai District Tianjin 300072, ChinaCollege of Management and Economics, Tianjin University, No. 92, WeiJin Road, NanKai District Tianjin 300072, ChinaCollege of Management and Economics, Tianjin University, No. 92, WeiJin Road, NanKai District Tianjin 300072, ChinaBased on the real situation of telecom industry in China, we establish a triopoly game model, which includes two competitive telecom firms and their correlative corporation which produces the complementary product. Both free market and bundling market will be concerned in this dynamic model. Moreover, we consider a one-to-many bundling way instead of two complementary products in terms of the proportion of one to one in a bundling product. By numerical simulation, we find that stable space will decrease and decision chaos appears when the degree of the competition becomes fierce between the two competitive telecom firms. Besides, increasing the amount of bundling services provided by a telecom firm can lead to different impacts on the prices of the three firms investigated. This paper enriches the decision-making for the strategy of bundling pricing and will be valuable for the telecom operators.http://dx.doi.org/10.1155/2018/5720392
spellingShingle Junhai Ma
Tiantong Xu
Wandong Lou
Research on a Triopoly Dynamic Game with Free Market and Bundling Market in the Chinese Telecom Industry
Discrete Dynamics in Nature and Society
title Research on a Triopoly Dynamic Game with Free Market and Bundling Market in the Chinese Telecom Industry
title_full Research on a Triopoly Dynamic Game with Free Market and Bundling Market in the Chinese Telecom Industry
title_fullStr Research on a Triopoly Dynamic Game with Free Market and Bundling Market in the Chinese Telecom Industry
title_full_unstemmed Research on a Triopoly Dynamic Game with Free Market and Bundling Market in the Chinese Telecom Industry
title_short Research on a Triopoly Dynamic Game with Free Market and Bundling Market in the Chinese Telecom Industry
title_sort research on a triopoly dynamic game with free market and bundling market in the chinese telecom industry
url http://dx.doi.org/10.1155/2018/5720392
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AT tiantongxu researchonatriopolydynamicgamewithfreemarketandbundlingmarketinthechinesetelecomindustry
AT wandonglou researchonatriopolydynamicgamewithfreemarketandbundlingmarketinthechinesetelecomindustry