讲座题目：Product and Price Competition with Selection of Unique and Common Features and Different Quality Levels

报 告 人：Burak Çelik 中国科学院大学经济与管理学院

讲座时间：2023年6月9日(周五) 12:15-13:30

讲座地点：中国科学院大学中关村校区教学楼S406

内容摘要

We consider two competing firms' new product introduction and pricing problem where both firms introduce their products sequentially or simultaneously. The products' features are discrete and have different quality levels. We differentiate unique features that are present only in one product and common features that are shared between two products. The firms' new product introduction problem is formulated as a mixed-integer nonlinear program and the firms' pricing problem is formulated as a nonlinear program. For linear product value, demand, and cost functions, we analytically determine the firms optimal feature and quality level selection in anticipation of the features and the quality levels of the competitor's product, and the resulting equilibrium prices. The optimal selection of unique features depends only on the value and cost of that feature's quality levels and the firm's own-price sensitivity. In addition, the optimal selection of common features also depends on the firms' cross-price sensitivities and the value but not on the cost of the competitor's quality levels of that feature. If the competing firms are symmetric, the first firm to introduce a product obtains a higher profit even with some lower quality feature levels compared to the second firm. Overall, the firm that has a competitive advantage prefers high-quality feature levels in its products, otherwise, differentiates its product via feature selection to lessen substitution effects. In most of the cases analyzed even if the firm does not have the first mover's advantage, firms should also avoid introducing their products simultaneously without observing the competitor's product.

主讲人简介

BSc (Industrial Engineering) from Bilkent University, Ankara, Turkey, 2013. MSc (Industrial Engineering) from Bilkent University, Ankara, Turkey, 2016. PhD (Industrial Engineering and Operations Management) from Koç University, Istanbul, Turkey, 2023. R&D Engineer in INRIA - Nord Europe Research Center, Lille, France, 2016-2017. Now, post-doc at the University of Chinese Academy of Sciences (School of Economics and Management), Beijing, China.