The Application Analysis of Game Theory on Double Eleven

Jiawei Bai; Zhuoqun Li; Yanya Lin

doi:10.2991/aebmr.k.220307.060

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The Application Analysis of Game Theory on Double Eleven

Authors

Jiawei Bai¹^{, *}^{, †}, Zhuoqun Li²^{, †}, Yanya Lin³^{, †}

¹Hangzhou RDFZ, Hangzhou, 310000, China

²Gezhi High School, Fuzhou, 350001, China

³Beijing Huijia Private School, Beijing, 100000, China

^†

These authors contributed equally

^*Corresponding author. Email: bai.jiawei@rkcshz.cn

Corresponding Author

Jiawei Bai

Available Online 26 March 2022.

DOI: 10.2991/aebmr.k.220307.060 How to use a DOI?
Keywords: Double Eleven; Shopping Strategy; Price War; Cooperation
Abstract: Double Eleven is a shopping festival in China. Millions of people wait until 12 a.m. of that day only to spend more money on various online shopping platforms. The reason people do this on Double Eleven is that all the online shopping companies will make a great discount on that day. Not only the consumers will benefit from the day of Double Eleven, but companies also gain a huge number of profits from this. Double Eleven also provides an opportunity for online shopping companies to attract more consumers through a greater number of discounts for their products. Since the demand will always go up whenever there are discounts on the products according to the law of demand. As a result, there are two choices for the companies during this opportunity of Double Eleven: price war and cooperation. The price war will make their products more attractive to consumers due to the lower prices in the market, whereas cooperation would make a win-win situation in which they both gain profits. This study focuses on that to what situation should firms choose to cooperate. It indicates that if the discounted rate is larger or equal to 0.5, companies will cooperate. On the contrary, the companies will choose to establish the price war if this parameter is smaller than 0.5, involving more profitability than cooperation. The result of this study can be helpful when firms decide a strategy.
Open Access: This is an open access article under the CC BY-NC license.

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Volume Title: Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
Series: Advances in Economics, Business and Management Research
Publication Date: 26 March 2022
ISBN: 978-94-6239-554-1
ISSN: 2352-5428
DOI: 10.2991/aebmr.k.220307.060 How to use a DOI?
Open Access: This is an open access article under the CC BY-NC license.

Cite this article

ris enw bib

TY  - CONF
AU  - Jiawei Bai
AU  - Zhuoqun Li
AU  - Yanya Lin
PY  - 2022
DA  - 2022/03/26
TI  - The Application Analysis of Game Theory on Double Eleven
BT  - Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
PB  - Atlantis Press
SP  - 377
EP  - 382
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220307.060
DO  - 10.2991/aebmr.k.220307.060
ID  - Bai2022
ER  -

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