Oligopolistic competition evolutionary model of service firms: A case study from China mobile and China Unicorn

In order to find the dynamic evolution process and its affecting factors, this paper set up a oligopolistic competition evolution hotelling model. We find that the market share of each firm is not only decided by its own price, process quality and service result, but also by its competitor´s price, process quality, service result and the consumer´s satisfactory degree. We also tested the model´s validity through an example of China Mobile and China Unicom. In the end we draw some conclusion and give some advice to the service firm.