Study on the price Stackelberg game model under different competitive environment

Abstract

The product sold in different stores may be not same price, mainly caused by diverse retailers\u2019 situations. Meanwhile, maximizing relative interests is the businesses\u2019 common goal. Based on the 2-2 suppliers-retailers situation, this paper researches on the market by using dynamic price Stackelberg game model. We consider two cases, one is retailers under the win-win environment (case 1) and the other is they under the malicious competition environment (case 2). Through analyzing and comparing the two cases, this paper finds that the influence of different parameters on the Nash Equilibrium stable range in size is same, while the amplitude of stable range, the prices of goods, sales as well as the businessman profit are all different. These results will be revealed in a series of charts, including the stability diagram, bifurcation diagram, phase plot and histogram. And the conclusions may have a certain reference value for businesses on how to stabilize the market and which competitive measures should be taken.