Price Competition Between Mobile Commerce Retailers and Web Site Retailers

With game theory as research tool, this paper investigates deeply on price competition behavior between mobile commerce retailers (MCR) and web site retailers (WSR) 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 and two related conclusions are pointed out. First, it gets MCR´s and WSR´s critical prices. Secondly, as the penetrate rate of m-commerce increasing, two hinds retailers´ perfect prices will decrease, and there exists a stable relationship between the ratios of speed declining.