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System Dynamics Model and Simulation of Price Discrimination among Networks in Telecommunication Operating Markets |
HU Jian-Bing, GU Xin-Yi |
University of Shanghai for Science and Technology, Shanghai, China |
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Abstract Price discrimination among networks in telecommunication markets was analyzed by using system dynamics. It is concluded that for leading telecommunication enterprises, adopting price discrimination among networks has good prospect of profits; not adopting the price discrimination is also a rational selection for following telecommunication enterprises. This balance between the leading enterprises and the followers is helpful to increasing social welfare. The market position in which an enterprise is would be relative. Relative superior and inferior in marketing competences could co-exit in some telecommunication enterprises, for example China Mobile. Thus, the picture of the balance would be complex. Whether to adopt the price discrimination or not would be in dilemma.
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Received: 14 November 2005
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