Analysis on Game Theory of Price Alliance
Liu Zhou-li · Economic Management · 2005
With fiercer market competition,price-decreasing has become one of common methods in competition which results in enterprises constant declining even leading to deficit of the whole industry.In order to avoid vicious price competition, enterprises in this industry wish to execute together the agreement price by establishing price alliance to prevent the declination of profits.There are many analyzing methods on the forming motivation,effectiveness and dissolve of price alliance and this paper carries on analysis from the aspect of game theory.