Price Competition between Brand and Generic Manufacturers

• Main Authors: Guang-Jhih Chen, 陳廣致
• Other Authors: Cheng-Han Wu
• Format: Others
• Language: zh-TW
• Published: 2014
• Online Access: http://ndltd.ncl.edu.tw/handle/90224404742579399435

碩士 === 國立雲林科技大學 === 工業工程與管理系 === 102 === In this research, we consider that consumers have quality perception about their previous purchases, and thus consumers’ switching behavior is associated with gap of consumer perception. In such an environment, we demonstrate a transition matrix to explore the consumers’ switching behavior. In supply chain setting, we formulate a duopolistic supply chain model to investigate the competitive interaction between brand manufacturer and generic manufacturer, who sell homogeneous product in the market, in an extensive-form game. We consider brand manufacturer must make a strategic choice in price: high or low price. Subsequently, we derive the manufacturers’ equilibrium pricing decision and profits when consumers have memory about their previous purchases. And explore the effects of parameters on the equilibrium result. Finally, we provide the managerial insights for decision makers.