The study on the relationship between financing strategy and investment strategy based on three-stage dynamic game model

In oligopoly market structure, the strategic relation among the enterprises´ decisions is another important considerable factor when they make their own corporate strategy. In this article, we study the effect of enterprise´s strategic debt on oligopoly pricing behavior under the uncertain environment by using a three-stage game model. We find that when the enterprises´ marginal income is increasing with the market demand booming, then the higher level of the enterprise´s debt will drive both itself and its competitor to decrease price, the market competition will also become more intense, and vice versa.