Research on Price Evolution of Electronic Markets Based on Dynamic Game

The adoption of price comparison technology can make electronic markets more competitive,hence affecting the competitive dynamics of online sales.In the case of duopolistic homogenous goods market,mult-period dynamic pricing game models are used to analyze how the prices in electronic markets evolve with the diffusion of price comparison shopping technology and probe into related fundamental theoretical proxies.Our results show:(ⅰ)the lowest price and the average price within the support of equilibrium price decrease with the development of electronic markets,at the rate positively related to the diffusion rate of price comparison technology.And there would exist price dispersion in the long run.(ⅱ)the larger the difference between firms' loyal segments is,the higher the lowest price and the average price within the support of equilibrium price would be.And(ⅲ) the higher accepted degree of customer for online goods can bring in the according higher lowest price and the average price.