Settlement of Internal Cutthroat Competition Amid IT Group Companies: Away from 'Prisoners' Dilemma' of Price Wars

摘要

Cutthroat competition amid subsidiary companies of IT Group Company due to immanent characteristics of IT industry and grouping management mechanism infringes upon the collective profits. Two ways to avoid cutthroat competition of group company with game theory are studied: the assessment objective made by IT group company for subsidiary companies focuses on profits not revenue; the supervisory department of group company shall intensify law enforcement strength and give severe punishment against illegal depreciation of the subsidiary company.