Implications for Firms with Limited Information to Take Advantage of Reference Price Effect in Competitive Settings
Joint Authors
Source
Issue
Vol. 2017, Issue 2017 (31 Dec. 2017), pp.1-16, 16 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2017-06-13
Country of Publication
Egypt
No. of Pages
16
Main Subjects
Abstract EN
This paper studies internal reference price effects when competitive firms face reference price effects and make decisions based on partial information, where their decision-making mechanism is modeled by a dynamic adjustment process.
It is shown that the evolution of this dynamic adjustment goes to stabilization if both adjustment speeds are small and the complexity of this evolution increases in adjustment speeds.
It is proved that the necessary condition for flip bifurcation or Neimark-Sacker bifurcation will occur with the increase of adjustment speed in two special cases.
What is more, numerical simulations show that these bifurcations do occur.
Then, the impacts of parameters on stability and profits are investigated and some management insights for firms with limited information to take advantage of reference price effects are provided.
American Psychological Association (APA)
Ma, Junhai& Guo, Zhanbing. 2017. Implications for Firms with Limited Information to Take Advantage of Reference Price Effect in Competitive Settings. Complexity،Vol. 2017, no. 2017, pp.1-16.
https://search.emarefa.net/detail/BIM-1143758
Modern Language Association (MLA)
Ma, Junhai& Guo, Zhanbing. Implications for Firms with Limited Information to Take Advantage of Reference Price Effect in Competitive Settings. Complexity No. 2017 (2017), pp.1-16.
https://search.emarefa.net/detail/BIM-1143758
American Medical Association (AMA)
Ma, Junhai& Guo, Zhanbing. Implications for Firms with Limited Information to Take Advantage of Reference Price Effect in Competitive Settings. Complexity. 2017. Vol. 2017, no. 2017, pp.1-16.
https://search.emarefa.net/detail/BIM-1143758
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1143758