ANALYSIS ON DIFFERENT COMPETITIVE STRATEGIES IN TELECOMMUNICATION AND ELECTRICITY GENERATION INDUSTRIES

摘要

This paper analyses why players choose different competitive strategies in the telecommunication industry and the generation industry. Based on discussing relevant factors influencing tacit collusion, the author suggests that customer transition probability should be introduced in order to understand the collusion process between duopolies. By constructing a game-model based on customer transition probability, this paper discusses the effects of product differentiation and customer switching barriers in tacit collusion while a new player enters the market, and how vigorous the price-competition would be. According to calculations, the author argues that high transition probability might facilitate tacit collusion between players and relaxes the intensity of price competition. At last, the author gives out some suggestion on regulation policies in power sector and telecommunication sector.