A Game Model of Product Quality/Cost:the Strategies of Pricing
产品质量-成本博弈模型:定价策略

The asymmetry of the information of the product quality makes the consumers lose their trust worthiness to pay for a product. The non\|honest firms select the "low\|low" or "high\|low" quality strategy according to the \$c\-1\|c\-0\$, that is, the lower cost of the production. In the game of the quality, the honest firms are in an unfavorable situation because of the high cost that is relative to the high quality. Therefore, it must make two strategic decisions--the pricing competition or the non\|pricing competition, and the low\|price retails or the high\|price retails. While the two\|stage models have been scrutinized through the different competition strategies and the applied conditions on pricing tendency, the optical discount rate, \$k\$, has been derived from the theoretical analysis.