Firm competition in a probabilistic framework of consumer choice
- Liao, Hao Physics Department, University of Fribourg, Switzerland
- Xiao, Rui Physics Department, University of Fribourg, Switzerland
- Chen, Duanbing Physics Department, University of Fribourg, Switzerland - Web Sciences Center, School of Computer Science and Engineering, University of Electronic Science and Technology of China, Chengdu, China
- Medo, Matúš Physics Department, University of Fribourg, Switzerland
- Zhang, Yi-Cheng Physics Department, University of Fribourg, Switzerland
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15.04.2014
Published in:
- Physica A: Statistical Mechanics and its Applications. - 2014, vol. 400, p. 47–56
English
We develop a probabilistic consumer choice framework based on information asymmetry between consumers and firms. This framework makes it possible to study market competition of several firms by both quality and price of their products. We find Nash market equilibria and other optimal strategies in various situations ranging from competition of two identical firms to firms of different sizes and firms which improve their efficiency.
- Faculty
- Faculté des sciences et de médecine
- Department
- Département de Physique
- Language
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- English
- Classification
- Physics
- License
- License undefined
- Identifiers
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- RERO DOC 210195
- DOI 10.1016/j.physa.2013.12.026
- Persistent URL
- https://folia.unifr.ch/unifr/documents/303788
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