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 46
- Downloads 0
Application of Laplace Transform Technique of Variable Order to the Generalized Caputo Fractional Model of Second Grade Nanofluid
The incorporation of fractional calculus into nanofluid models has proven effective in capturing the complex dynamics of nanofluid flow and heat transfer, thereby enhancing the precision of predictions in this intricate...
Stochastic Dynamics and Extinction Time in SIR Epidemiological Models
In the realm of epidemiological modeling, the intricacies of epidemic dynamics are elucidated through the lens of compartmental models, with the SIR (Susceptible-Infectious-Recovered) and its variant, the SIS (Susceptibl...
Modeling Retail Price Volatility of Selected Food Items in Cross River State, Nigeria Using GARCH Models
Food inflation presents a significant challenge in Nigeria. This study examines the volatility of four primary food items—tomatoes, yam, yellow garri, and imported rice—in Cross River State, Nigeria, utilizing data on mo...
Evaluating the Influence of the International Civil Aviation Organization on Aircraft Accident Rates and Fatalities: A Seven-Decade Historical Data Analysis
The advent of air travel, originally proposed by the Wright brothers, has led to a significant surge in aircraft usage for human transportation. In its nascent stages, this mode of transport was linked with a high freque...
An Empirical Analysis of Regional Logistics Efficiency and Its Determinants in Sichuan Province: Evidence from DEA and Tobit Models
This study investigates the regional logistics efficiency of Sichuan Province, China, from 2011 to 2019, using a combination of the Data Envelopment Analysis-Banker, Charnes, and Cooper (DEA-BCC) model and the Tobit mode...