A Bertrand model of pricing of complementary goods under information asymmetry

Yue, Xiaohang; Mukhopadhyay, Samar K.; Zhu, Xiaowei

doi:10.1016/j.jbusres.2005.06.005

Cited by 100 publications

(61 citation statements)

References 16 publications

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“…On the contrary, the concept of complementary products arises when customers have to buy more than one product at the same time to obtain the full utility of the products [10]. Complementary product strategy has gained interest in recent years, the enterprises supplying products to the market are coupled in the sense and their demands are interrelated [11].…”

Section: Literature Reviewmentioning

confidence: 99%

“…Complementary product strategy has gained interest in recent years, the enterprises supplying products to the market are coupled in the sense and their demands are interrelated [11]. The marketing paradigm of complementary products is different from that of substitutable products in which the enterprises benefit from each other's sales rather than losing sales of the other firm [10]. For example, HP leads the world in laser printers; Canon, on the other hand, supplies components to the same market [12].…”

Section: Literature Reviewmentioning

confidence: 99%

“…In [14], they confirmed Cournot's view by showing that a firm could charge higher prices by selling complementary products to customers who prefer the composite goods. In [10], they presented a profit maximization model to obtain optimal pricing strategies. [15] developed a profit-maximization model which could help firms find optimum bundled product categories and pricing strategies, and found that optimum bundle price strategies existed.…”

Section: Literature Reviewmentioning

confidence: 99%

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Simulation on the Complementary Product Strategy Based on the Cournot-Bertrand Mixed Game Model

Huang¹,

Liu²,

Qi³

2014

Int. j. simul. model.

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In this article, we report the results of a study that explores an output-pricing game model in a complex system which comprises two main manufacturers and two complementary product enterprises. First, optimization method is used to study the influence of parameters on the optimal decisions of the model. Second, a dynamic game model and a controlled model are established in order to analyse the system's dynamic characteristics in disequilibrium state by dynamic simulation. The simulation results show that the increase of product substitutability will be unfavourable to all members of the complex system, enterprises should control the product's complementarity thus can they obtain maximum profit respectively. In addition, enterprises in the system can reach Nash Equilibrium, but complementary enterprises are lack of cooperation enthusiasm with the increase of substitutability of main product. The complex characteristics of the model with the change of parameters is exhibited by dynamic simulation, and the stability of variables will change when the parameters taking different values. The results can provide references for managers in variable adjustment, choice of complementary product strategy and product design, etc.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

See 1 more Smart Citation

Simulation on the Complementary Product Strategy Based on the Cournot-Bertrand Mixed Game Model

Huang¹,

Liu²,

Qi³

2014

Int. j. simul. model.

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show abstract

“…Some other examples of complementary products are tooth brush and tooth paste, computer and its software, etc. Yue et al [29] studied two complementary products considering bundling strategy and obtained optimal pricing decision under three different cases. Yan and Bandyopadhyay [30] studied bundling of complementary products in which the demand is sensitive to price of both products.…”

Section: Introductionmentioning

confidence: 99%

Inventory of complementary products with stock dependent demand under vendor managed inventory with consignment policy

2017

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This paper proposes an integrated two-stage model, which consists of one vendor and one buyer for two complementary products. The vendor produces two types of products and delivers them to the buyer in distinct batches. Buyer stocks items in the warehouse and on the shelf. The demand for each product is sensitive to stock levels of both products. A vendor managed inventory with consignment stock policy is considered. The number of shipments and replenishment lot sizes are jointly determined as decision variables in such a way that total profit is maximized. The numerical study shows that as complementary rate increases, the quantity of transfers and demand of both products increase. Hence, ignoring the complementation between products leads to some customers lost.

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“…Biens complémentaires et stratégies des firmes 13 En préambule, il convient tout d'abord de rappeler que la notion de complémentarité entre des biens s'apprécie eu égard à l'utilité générée par leur consommation. C'est ainsi que Gabszewicz et al (2001) définissent les biens complémentaires par le fait que leur consommation jointe génère une utilité plus grande que celle qui résulterait de la consommation de ces biens isolément les uns des autres ; la complémentarité entre les biens étant plus ou moins forte, son importance peut s'apprécier par le surplus d'utilité généré par les deux biens consommés simultanément plutôt qu'isolément (Yue et al, 2006 ;Gabszewicz et al, 2001). À l'extrême en terme d'importance de degré de complémentarité, il y a les biens dont la consommation génère de l'utilité à seule condition de consommer le bien complémentaire, appelé bien essentiel (Chen et Nalebuff, 2006 ;Carlton et Waldman, 2002).…”

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Premières applications de la pharmacogénomique en oncologie

Seror¹,

Elasri²,

Avenel³

2007

rei

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Le présent article propose d’analyser les stratégies industrielles et, partant, d’identifier et de discuter les enjeux de régulation dans le domaine de l’oncologie où l’importance des toxicités des chimiothérapies rend particulièrement pertinent le développement de tests de pharmacogénomique qui ouvrent des possibilités nouvelles de prescription de médicaments fondée sur les résultats de tests génomiques. L’analyse des stratégies industrielles susceptibles d’être déployées dans le contexte de biens complémentaires montre notamment comment la régulation publique peut être utilisée à des fins stratégiques par les différentes firmes impliquées et pointe l’impact sur la diffusion des décisions publiques concernant la fixation des prix.

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A Bertrand model of pricing of complementary goods under information asymmetry

Cited by 100 publications

References 16 publications

Simulation on the Complementary Product Strategy Based on the Cournot-Bertrand Mixed Game Model

Simulation on the Complementary Product Strategy Based on the Cournot-Bertrand Mixed Game Model

Inventory of complementary products with stock dependent demand under vendor managed inventory with consignment policy

Premières applications de la pharmacogénomique en oncologie

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