Research on the Influence of Bounded Rationality and Product Differentiation on the Stability of Steel Industry Market
Joint Authors
Li, Yonghua
Han, Zenglin
Duan, Ye
Mu, Hailin
Yang, Jun
Source
Discrete Dynamics in Nature and Society
Issue
Vol. 2020, Issue 2020 (31 Dec. 2020), pp.1-20, 20 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2020-01-17
Country of Publication
Egypt
No. of Pages
20
Main Subjects
Abstract EN
At present, the problems of homogenization and low quality in China’s iron and steel industry are particularly prominent and the ability of the enterprises to cope with change is insufficient.
Adopting product differentiation strategy and dynamic adjustment strategy can allow steel enterprises and the industry to better adapt to future changes.
By introducing the product differentiation degree (substitution coefficient) and the bounded rationality strategy to simulate these two strategic means, this paper constructs an extended two-stage dynamic game model to analyse the dynamic game scenarios and steel market stability in China.
As new findings, we report the following: (1) The system is more likely to fall into an unbalanced state when multiple enterprises adopt the policy of dynamic output adjustment simultaneously.
(2) Enterprises with large output and small output have different output adjustment policies.
When enterprises with big-scale output adopt a bit larger adjustment policies, enterprises with small output will be strongly impacted, and the available adjustment space will be sharply compressed.
(3) The gradual increase in the difference between products reduces the stability of the market.
(4) When product differentiation and bounded rationality strategies coexist, the steel market may fall into an unbalanced state when the degree of product difference increases excessively and the enterprise adopts more drastic output adjustment policies.
Therefore, there are pros and cons to product differentiation strategy and bounded rationality adjustment strategy.
When each steel oligopoly enterprise formulates a production plan, it needs to comprehensively consider the output changes of the other enterprises and carefully weigh the strategic issues.
American Psychological Association (APA)
Duan, Ye& Han, Zenglin& Mu, Hailin& Yang, Jun& Li, Yonghua. 2020. Research on the Influence of Bounded Rationality and Product Differentiation on the Stability of Steel Industry Market. Discrete Dynamics in Nature and Society،Vol. 2020, no. 2020, pp.1-20.
https://search.emarefa.net/detail/BIM-1152843
Modern Language Association (MLA)
Duan, Ye…[et al.]. Research on the Influence of Bounded Rationality and Product Differentiation on the Stability of Steel Industry Market. Discrete Dynamics in Nature and Society No. 2020 (2020), pp.1-20.
https://search.emarefa.net/detail/BIM-1152843
American Medical Association (AMA)
Duan, Ye& Han, Zenglin& Mu, Hailin& Yang, Jun& Li, Yonghua. Research on the Influence of Bounded Rationality and Product Differentiation on the Stability of Steel Industry Market. Discrete Dynamics in Nature and Society. 2020. Vol. 2020, no. 2020, pp.1-20.
https://search.emarefa.net/detail/BIM-1152843
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1152843