Duopoly Competition Between Chauffeured Car and Taxi: An Analysis of Pricing and Market Segmentation

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摘要 Chauffeuredcarservice(CCS)hasdevelopedrapidlyinrecentyears.AlthoughCCSbringsconvenienceandeffectiveness,italsotriggerssomenewproblemslikeviciouscompetition.ThisworkstudiestheduopolycompetitionbetweenCCScompanyandtaxicompany,intermsofdifferentaveragecostandnumberofvehiclesoftwocompanies.Tofindthesolutionslikethepricingschemetoeasetheviciouscompetition,Hotellingmodelisintroduced.TheHotelling-typemodelisusedtopresentpassengers’preferencestothecompanies.Besides,failingsituationistakenintoaccountintheHotellingmodeltodescribethesituationwherepassenger’sdemandisnotsatisfiedinreality.Thisworktheoreticallyanalyzesthepriceschemeandequilibriummarketsegmentationbasedontheaveragecostandnumberofvehiclesofeachcompany.Furthermore,companies’profits,passengers’utilityandsocialwelfareinequilibriumarerevealedbasedonthegametheory.Thestudyshowsthatbothofcompaniescangetoptimalprofitsbysettingeffectivepricescheme.Thecompanywhichhashigherprice,definitelygetslessmarketshare.Inaddition,moderatecompetitioncanleadtopositiveinfluenceonsocialwelfare.
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出版日期 2017年06月16日(中国期刊网平台首次上网日期,不代表论文的发表时间)
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