The Pricing Strategy of Oligopolistic Competition Food Firms with the Asymmetric Information and Scientific Uncertainty

doi:10.1155/2017/4628905

CORC > 上海财经大学 > 上海财经大学

	The Pricing Strategy of Oligopolistic Competition Food Firms with the Asymmetric Information and Scientific Uncertainty
	Zhao, Li 1,2; Wang, Changwei 3; Peng, Xiaohui 4; Liu, Bin 1; Ahlstrom, David 5
刊名	JOURNAL OF FOOD QUALITY
	2017
ISSN号	0146-9428
DOI	10.1155/2017/4628905
英文摘要	The arguments for and against genetically modified (GM) food focus on the characteristics of the scientific uncertainty and asymmetric information for the GM food. How do these two factors affect the competition and pricing strategy of food firms that separate GM food and conventional food conforming to consumer's right to know? We explore the issue of pricing strategies between two firms producing horizontally and vertically differentiated foods in the context of asymmetric information and scientific uncertainty. The theoretical results show that there are two separating perfect Bayesian equilibria in which the prices of the conventional food and GM food are strategic complements and the profits of two types of firms are both increasing in the price of GM food. The numerical example shows that a decrease of the expected potential net damage as the most sensitive parameter leads to an increase of the profits of the two firms. Additionally, an increase in product differentiation helps to increase the two firms' profits. Finally, the decrease in risk aversion as the second sensitive parameter helps to increase both products' prices and quantities and both firms' profits. This paper contributes by combining food safety regulation with market mechanisms and competition.
WOS研究方向	Food Science & Technology
语种	英语
出版者	WILEY-HINDAWI
WOS记录号	WOS:000416942500001
内容类型	期刊论文
源URL	[http://10.2.47.112/handle/2XS4QKH4/1067]
专题	上海财经大学
作者单位	1.Shanghai Maritime Univ, Sch Econ & Management, Shanghai 201306, Peoples R China; 2.Shanghai Jiao Tong Univ, Antai Coll Econ & Management, Shanghai 200030, Peoples R China; 3.Shanghai Univ Finance & Econ, Inst Finance & Econ, Shanghai, Peoples R China; 4.Nanjing Normal Univ, Business Sch, Nanjing 210023, Jiangsu, Peoples R China; 5.Chinese Univ Hong Kong, CUHK Business Sch, Dept Management, Shatin, Hong Kong, Peoples R China
推荐引用方式 GB/T 7714	Zhao, Li,Wang, Changwei,Peng, Xiaohui,et al. The Pricing Strategy of Oligopolistic Competition Food Firms with the Asymmetric Information and Scientific Uncertainty[J]. JOURNAL OF FOOD QUALITY,2017.
APA	Zhao, Li,Wang, Changwei,Peng, Xiaohui,Liu, Bin,&Ahlstrom, David.(2017).The Pricing Strategy of Oligopolistic Competition Food Firms with the Asymmetric Information and Scientific Uncertainty.JOURNAL OF FOOD QUALITY.
MLA	Zhao, Li,et al."The Pricing Strategy of Oligopolistic Competition Food Firms with the Asymmetric Information and Scientific Uncertainty".JOURNAL OF FOOD QUALITY (2017).