Author(s)

Yanwei Shi, Chunhui Ma

Corresponding Author

Yanwei Shi

ABSTRACT

The main purpose of this paper is to study the strategies for the pre-sale prices of new products chosen by firms in game theory. Firstly, for the differentiated new products, the equilibrium of the strategies for the pre-sale prices of new products chosen by firms at the same time is analyzed in duopoly market. Then, the backward induction solution is discussed when the pre-sale prices of new products are chosen by firms at the different times. Finally, by comparing the profits in two cases, it is obtained that the firm that first chosen the pre-sale price of new product will get more profits.

KEYWORDS

Duopoly market, pre-sale price, equilibrium, backward induction