The Game Analysis on Product Quality Position of the Market First Mover

Under the premise of the competitive enterprise existing a cost difference, this article utilizes Hotelling model analyzing the product quality position of the market first mover systematically. We will find by analysis: The market first mover does not certainly have the first moving advantages than the market follower, it need to consider the cost advantage of enterprise product sufficiently to ascertain the issue. When the market first mover has cost advantage, it may take the lead to position product quality in comparatively ideal location; when the market first mover has cost inferior position, the market first mover can not position product quality in comparatively ideal location on his own wish, otherwise will compete with the market follower fiercely, now the market first mover should make their product quality position keeping certain distance with the follower in order to avoid over- competition.