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The Research of the Theory of Game for Chain-retail Business’s Entrance to Market

Author: ZhangZhiDong
Tutor: ZhangDongShan；ZhuGangShan
School: Tongji University
Course: Industrial Economics
Keywords: Chain-retail Business Game of Chain-store Incumbent Entrant Equilibrium
CLC: F224.32
Type: Master's thesis
Year: 2006
Downloads: 327
Quote: 0
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Abstract


Game of entry deterrence is a common elementary model in industrial economics. Game of Chain-store comes into being from repeated the game of entry deterrence many times. In the proceeding of this game’ s inferring, there appeal contradictions between the result of this game’ s inference and reasonable human behaviors. The result is contradictive with human’ s practice experience. So people call it the Chain-store Paradox.According to the explanation of the game theory, none of firms can prevent the other firms’ entrance and then monopolize the market. If we receive this kind of explanation, we never need to fear that monopolization will roil the market, disrupt social economic order. But in fact, monopolization is really being, it is necessary to analyze this condition, find the truth. Based on that, social and government can take effective measure to prevent and punish monopolization.This article raise problem at first, giving the doubts about game. Secondly, introduce of chain-store paradox’s emergence and forms theory’ s result. The thirdly, provide some methods of solving paradox in theory and practice. At last, conduct a demonstrative analysis. Based on the analytic result above, give a comprehensive explanation, show the importance of solving paradox, and bring in a summary for the article.

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CLC: > Economic > Economic planning and management > Economic calculation, economic and mathematical methods > Economic and mathematical methods > Operations Research in the economy > Game Theory
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