Marketing strategy of price competition and product differentiation in duopoly enterprises with asymmetric information

Models of two-stage and three-stage games are set up in this article according to the Hotelling linear model. In the models, one-round pricing of products concerning the differentiated cost and the asymmetric information for duopoly enterprises is considered. The marketing strategy of price competition and product differentiation is discussed. And it must result in such a situation that both sides can obtain higher price and more profit in Stackelberg equilibrium than that in Nash equilibrium. Moreover, under the Bertrand-Stackelberg marketing competition equilibrium, the follower has the advantage of surpassing the former one and can make more profit than the leading one.