Title :
Bertrand game model and its equilibrium analysis based on RDEU theory
Author :
Xiong, Guoqiang ; Fu, Wenli
Author_Institution :
Sch. of Bus. Adm., Xi´´an Univ. of Technol., Xi´´an, China
Abstract :
The current researches on oligarchic price competition model are on the premise of rational players, but there are larger deviations between the results and realities. In the framework of RDEU decision theory, the paper makes a new study on Bertrand price game model. Then it constructs a RDEU-Bertrand game model containing incomplete information of players´ emotional preferences by the introduction of emotional factors reflecting their interactions under different risk preferences. At last it determines Nash equilibrium, and makes an analysis of dynamic evolution on it by numerical simulation.
Keywords :
decision theory; game theory; pricing; Nash equilibrium; RDEU decision theory; RDEU-Bertrand price game model; dynamic evolution analysis; emotional factor; equilibrium analysis; numerical simulation; oligarchic price competition model; players emotional preference; rational player; risk preference; Analytical models; Companies; Economics; Games; Nash equilibrium; Numerical models; Bertrand Model; Emotional Function; Nash Equilibrium; RDEU Theory;
Conference_Titel :
Business Management and Electronic Information (BMEI), 2011 International Conference on
Conference_Location :
Guangzhou
Print_ISBN :
978-1-61284-108-3
DOI :
10.1109/ICBMEI.2011.5914430
