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| Complexity Analysis and Chaos Control of Substitutable Products Pricing Game |
| CHEN Jianhua, KONG Xiao
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| School of Transportation and Logistics Engineering, Wuhan University of Technology, Wuhan 430063, China |
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Abstract In order to explore how two manufacturers producing mutual substitutes make pricing decisions, the evolutionary game models were constructed in three different cases, including the retailer, and the complex dynamic behaviors were analyzed using nonlinear theories. The results show that, when the retailer has service cost input, two manufacturers will increase the wholesale prices, and considering price difference is unfavorable to the one with higher production cost; too fast price adjustment speed will make the system fall into chaos; the increase of cross-price sensitivity coefficient and price ratio coefficient will reduce the wholesale prices of two manufacturers; the delayed feedback and state feedback compound control method was designed to control the unstable system.
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Received: 09 July 2024
Published: 19 May 2026
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