Research On Pricing Strategy Of Mobile Communication Resale Service In China Based On Bertrand Model

摘要

Virtual operators play an important role in stabilizing the competition pattern of China's telecommunication market and promoting the development of mobile communication. The virtual operators could only obtain alittle higher wholesale resale prices thant he retail prices of basic operators due to the follow-up failure of the basic operators' retail prices a djustment, which brings virtual operators higher cost restricting their development seriously. This paper analyzes the pricing game between the basic operators and the virtual ope rators based on the Bertrand model. The result of collusion is that the price and the profit are all increase for both in comparison with make interests respectively. Basic operators have an incentive to maintain higher wholesale price, therefore government regulators must participate in the game. Based on the analysis results, the effective strategies for the development of mobile communication resale service in our country are put forward.