{"title":"Purchase Price Control in High-Tech Product Markets under Competition of Suppliers with Multi-Channel Production Capacities","authors":"I. Selezneva","doi":"10.25728/ASSA.2021.21.1.918","DOIUrl":null,"url":null,"abstract":"The strategic control of the purchase price for high-tech products and market competition is considered. For this purpose, a new bilateral oligopoly market model is proposed. The new model allows determining the purchase prices for high-tech products under the competition of suppliers with flexible production capacities. Parametric calculations of the purchase prices, the number of competing suppliers and their production capacities are performed depending on the unit price offered by the monopsonist customer. The purchase prices offered by the customers to guarantee the competitiveness of the market are determined. The customers’ optimal pricing policy that will reduce the purchasing costs and/or ensure the existence of competing suppliers in the long run is identified. A possible price reduction for high-tech products when applying this policy is calculated. The ranges of some characteristic market parameters (the capital-output ratio, the rates of order execution and order flow, and the number of potential order sources) for which this policy is efficient are determined.","PeriodicalId":39095,"journal":{"name":"Advances in Systems Science and Applications","volume":"21 1","pages":"11-21"},"PeriodicalIF":0.0000,"publicationDate":"2021-03-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Advances in Systems Science and Applications","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.25728/ASSA.2021.21.1.918","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"Engineering","Score":null,"Total":0}
引用次数: 0
Abstract
The strategic control of the purchase price for high-tech products and market competition is considered. For this purpose, a new bilateral oligopoly market model is proposed. The new model allows determining the purchase prices for high-tech products under the competition of suppliers with flexible production capacities. Parametric calculations of the purchase prices, the number of competing suppliers and their production capacities are performed depending on the unit price offered by the monopsonist customer. The purchase prices offered by the customers to guarantee the competitiveness of the market are determined. The customers’ optimal pricing policy that will reduce the purchasing costs and/or ensure the existence of competing suppliers in the long run is identified. A possible price reduction for high-tech products when applying this policy is calculated. The ranges of some characteristic market parameters (the capital-output ratio, the rates of order execution and order flow, and the number of potential order sources) for which this policy is efficient are determined.
期刊介绍:
Advances in Systems Science and Applications (ASSA) is an international peer-reviewed open-source online academic journal. Its scope covers all major aspects of systems (and processes) analysis, modeling, simulation, and control, ranging from theoretical and methodological developments to a large variety of application areas. Survey articles and innovative results are also welcome. ASSA is aimed at the audience of scientists, engineers and researchers working in the framework of these problems. ASSA should be a platform on which researchers will be able to communicate and discuss both their specialized issues and interdisciplinary problems of systems analysis and its applications in science and industry, including data science, artificial intelligence, material science, manufacturing, transportation, power and energy, ecology, corporate management, public governance, finance, and many others.