Academic literature on the topic 'Market Entry Game Analysis'

We estimate a perfect information static entry game to study the effect of cultural entry barriers on entry and competition in the retail banking industry. Canada provides a favorable setting for analysis due to its high linguistic diversity, concentrated market, and regulatory entry barriers. We find that cultural affinity between customers and financial institutions that share a common cultural origin plays an important role in explaining the comparative advantages of these institutions in certain markets. Using several counterfactual experiments and additional empirical evidence, we show that the effectiveness of regulations intended to foster competition is significantly limited by cultural barriers, which is a key determinant that shapes the competitive landscape of the industry. (JEL G21, G28, L13, Z13)

Advertising has become the most important part of emerging advertising media with rich content, vivid form, huge browsing volume, and exponential growth in market share. It brings huge profits to operators and advertisers participating in bidding every year. Formulate reasonable allocation rules and payment rules for advertising resources in advertising space sales. The advertising configuration platform mainly has three functions: the entry function of home page advertising, serving the company’s operation department and storing the advertising information entered by operation, with a large amount of data, involving more than a dozen tables. The advertisement output function outputs the advertisement of the storage layer through the interface in JSON data format. This part of the function serves the downstream systems, such as mobile phone clients and PC. Starting from the requirements’ analysis, this study introduces the platform design and the analysis method logic, shows the implementation of the platform, and then analyzes and describes the test process from the aspects of function and performance. Based on the review and summary of the formation and characteristics of the competitive structure of China’s advertising market and the research results of foreign advertising classification, this study makes a qualitative and quantitative study on the competitive strategy of China’s advertising game by using the principles of service marketing and advertising, the classical model of oligarch competitive structure, game theory, differential game, and dynamic optimization. In terms of qualitative research, this study discusses the impact of advertising on China’s market competition pattern and the advertising game strategy through the comparative study of advertising and the analysis of market characteristics. The study found that due to the high barriers to entry of the advertising market and the intangibility of products, the strategy of putting category advertising and information advertising should be adopted. In quantitative research, based on the Sethi model, this study discusses the advertising game strategy model of the Oligarchic competition structure. The important conclusions include the profitability of enterprises from the market share is the most important factor to determine the market share and advertising expenditure. The impact of advertising on market share is obvious. The role of advertising expenditure has a time lag. Drastic changes in the scale of advertising expenditure will cause long-term fluctuations in the market structure. The research method has a certain universality, so the research results can also be used for reference for the advertising strategy of other industries with oligopoly competition structures.

Problem definition : Mobile communications technologies and online platforms have enabled large-scale consumer-to-consumer (C2C) sharing of their underutilized products. This paper studies a manufacturer’s optimal entry strategy in the product-sharing market and the economic implications of its entry. Academic/practical relevance : Sharing of products or services among consumers has experienced dramatic growth in recent years. The impact of C2C sharing on traditional firms can be very significant. In response to C2C product sharing, many manufacturers (e.g., General Motors and BMW) have entered the product-sharing market to provide business-to-consumer (B2C) rental services in addition to outright sales to consumers. Methodology : We employ a game-theoretic analytical model for our analysis. Results : Our analysis shows that when C2C sharing has a low transaction cost and the manufacturer’s marginal cost of production is not very high, the manufacturer will find it not optimal to offer its own rental services to consumers. In contrast, when the C2C sharing transaction cost is high or the manufacturer’s marginal cost of production is high, the manufacturer should offer enough units of the products for rental to squeeze out C2C sharing (in expectation). When the C2C-sharing transaction cost and the manufacturer’s marginal cost are both in the middle ranges, the manufacturer’s rental services and the C2C sharing will coexist, in which case the manufacturer’s entry in the sharing market may reduce the total number of units of the product in the whole market, but increase the consumer surplus and the social welfare. This reduced number of products due to the manufacturer’s B2C rental service also suggests less environmental impact from production. Managerial implications : The production cost and the C2C sharing transaction cost play critical roles in determining the manufacturer’s optimal quantity to use for its B2C rental services and the equilibrium outcome. In some situations, the manufacturer’s entry in the sharing market provides not only economic benefits to the firm and consumers, but also environmental benefits to the society as a whole.