Dynamic Operational Strategies Incorporating Consumer Reference Price Effects and Enterprise Behavior: A Differential Game Approach
Journal Title: Acadlore Transactions on Applied Mathematics and Statistics - Year 2023, Vol 1, Issue 1
Abstract
The continuous evolution of consumer behavior in the modern era of consumption has prompted enterprises to explore the underlying behavioral factors of consumers and cater to their particular needs. Moreover, developing a rational operational behavior model and responding effectively to the dynamic market environment have become critical concerns for businesses. This study examines the impact of consumer reference price effects and enterprise short-sighted behavior on strategic selection and performance, employing differential game theory to construct a game model between manufacturers and retailers. Utilizing Behrman's continuous dynamic programming theory, analytical solutions for various models are derived, followed by comparative analyses and numerical examples. The research reveals that: (1) manufacturers' behavior patterns are found to be dominant, favoring far-sighted behavior, which not only enhances profits but also enables consumers to access higher quality and cost-effective products; retailers should opt for collaboration with far-sighted manufacturers and exhibit a preference for short-sighted behavior. (2) In terms of overall system profit, the FM model emerges as the optimal combination. (3) When the reference price effect has a small impact on market demand, enterprises can make use of the reference price effect to actively promote marketing and gain profit; as the influence increases, intensifying the degree of influence effectively augments profits.
Authors and Affiliations
Fangfang Guo, Zhuang Wu, Yuanyuan Wang, Jiaqi Du, Wanshu Fu
Keywords
Related Articles
- EP ID EP732896
- DOI 10.56578/atams010103
- Views 44
- Downloads 0
A Systemic Approach to Risk Management: Utilizing Decision Support Software Solutions for Enhanced Decision-Making
The process of decision-making involves selecting the most suitable management action from a range of options, thereby guiding the system towards its management objectives. Within the complex decision-making environment,...
Risk Spillovers and Hedging in the Chinese Stock Market: An Asymmetric VAR-BEKK-AGARCH Analysis
In the present investigation, the phenomena of multi-scale volatility spillovers and dynamic hedging within the Chinese stock market are scrutinized, with particular emphasis on the implications of structural breaks. The...
Efficacy of Induced Complex Aggregation Operators in Multi-Attribute Decision-Making with Confidence Levels
In the pursuit of advancing multi-attribute group decision-making (MAGDM) methodologies, this study introduces two novel aggregation operators: the Induced Confidence Complex Pythagorean Fuzzy Ordered Weighted Geometric...
Collapsing and Expanding Observation of Anisotropic Charged Source in f(R,T) Gravity
In the present work we investigate the collapsing and expanding solutions of the Einstein’s field equation of anisotropic fluid in spherically symmetric space-time and with charge within the framework of f(R, T) theory,...
Analyzing Impact of Effort, Interest and Cognitive-Competence on Statistics Achievement Through Meditation of Self-Concept Statistics
This investigation was conducted to assess the impact of effort, interest, and cognitive competence on statistics achievement, mediated by self-concept among students. The study engaged 453 students enrolled in a statist...