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Price Competition between Mobile Commerce Retailers and Traditional Off-Line Retailers when m-Consumers are Loss Averse

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5 Author(s)
Hao Fu ; Sch. of Econ. & Manage., Southwest Jiaotong Univ., Chengdu ; Rongfang Qin ; Lihui Geng ; Xiaoli Li
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With loss aversion and game theory as research tools, this paper investigates deeply on price competition behavior between mobile commerce retailers (MCR) and traditional off-line retailers (TOR) in m-commerce era, elicits 2 kinds of market structures. Furthermore, it gives out perfect equilibrium prices as well as market scale under each condition of market structure. On this basis, two related propositions are pointed out. First, it gets MCRpsilas and TORpsilas perfect prices in competition, further analysis can find that in the competition between MCR and TOR when these two kinds of retailers coexist, two exterior factors and three inner factors decide the price difference. Second, as the penetrate rate of m-commerce increasing, perfect prices of two kinds of retailers will change, and the ratio of their change speed will be stable. Therefore, this research not only analyses price competition behavior between MCR and TOR in m-commerce era, but also provides basic theoretical foundation for further behavioral research on m-commerce pricing.

Published in:

2008 International Conference on Information Management, Innovation Management and Industrial Engineering  (Volume:3 )

Date of Conference:

19-21 Dec. 2008