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Chinese Journal of Management Science ›› 2008, Vol. 16 ›› Issue (4): 127-131.

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Open System Game Pricing Model for Enterprises with Different Cost

LI Sen, GAO Ming   

  1. School of Business Administration, Northeastern University, Shenyang 110004, China
  • Received:2007-04-27 Revised:2008-07-23 Online:2008-08-31 Published:2008-08-31

Abstract: Based on the different cost of enterprises,a competitive game pricing model as well as a cooperative game pricing model are established and compared between the two enterprises with different costs under a closed system.Then an analysis is conducted and results come out that a rational enterprise would not choose the competitive game price because of the low profit,nor will they choose cooperative game pricing,for the high price might lead to more potential competitors.In addition,a pricing model under open system is established with the conception of margin prices Factors that influence the margin price are identified.The reasons why competitive price can keep the company with a comparatively higher profit are also clarified.A numerical example is given to illustrate the model at last.

Key words: game, price model, open system, critical price

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