Positioning–pricing problem of heterogeneous duopoly with uncertain consumer preferences

Two‐Stage Game‐Based Pricing Strategy for the Duopoly Online Freight Platform

“…Te Hotelling model is frequently used to study pricing problems in duopoly markets. Yao et al [20] explored the complex efects of consumer preference uncertainty in optimal strategies in duopoly markets based on an improved Hotelling model. Te Hotelling price competition model is an application of Nash equilibrium under the static game of complete information, which means that the products are the same in material properties, but diferent in spatial position.…”

“…It can be seen that n 1 H and N 1,2 H change in opposite direction with t H .When t H is large enough, the consignor tends to be single-homing (N 1,2 H � 0), and eventually the two platforms share the resources of the consignor (n 1 H � 0.5). By setting t H � 5 and c P � 5, and varying B H ∈ [10,20], the results are plotted in Figure 3(b). It can be seen from Figure 3(a) that n 1 H and N 1,2 H change in opposite direction with B H .…”

“…(2) Te experiment analysis of the impact of B H , t H , t S , c P , p i 0 , and α S on the platform's proft. By setting t H � 5, t S � 10, c P � 5, p i 0 � 2, α S � 0.2, and varying B H ∈ [10,20], the results obtained are plotted in Figure 4(a). It can be seen that π P decreases as B H increases.…”

“…It can be seen that π P decreases as B H increases. By setting B H � 10, c P � 5, p i 0 � 2, α S � 0.2, and varying t H ∈ [2.5, 5], t S ∈ [10,20], the results are plotted in Figure 4(b). It can be seen that π P increases as both t H and t S increase.…”

“…By setting t H � 5, t S � 10, c P � 5, p i 0 � 2, α S � 0.2, and varying B H ∈ [10, 20], the results obtained are plotted in Figure 5(a) to show the trend of p 1 H and p 1 S changes with B H , relatively minor on p 1 H and major on p 1 S in a benefcial way. By setting B H � 10, c P � 5, p i 0 � 2, α S � 0.2 and varying t H ∈ [2.5, 5] and t S ∈[10,20], the results are plotted in Figure5(b), which shows that p 1 S increases with unit conversion costs for two-sided users. By setting B H � 10, c P � 5, p i 0 � 2, α S � 0.2, t S � 10, and varying c P ∈ [0, 5], the results are plotted in Figure5(c), which shows that both p 1 H and p 1 S increase with c P .…”