For the sale of a product with network externalities, a Stackelberg model involving an incumbent and an entrant is developed considering the impact of three strategic decision-making modes of the incumbent and consumers on the pricing, market share, and profit of firms. In addition, the impact of consumers’ strategic behaviours on firms’ pricing decisions and how firms respond to strategic customers is discussed. The results show that, in the SS (strategic firm facing strategic consumers) decision-making mode, the incumbent will implement long-term pricing and finally obtain the maximum profit, while as a follower of the incumbent, the entrant will also obtain the maximum profit in the SS mode. In the NS (nonstrategic firm facing strategic consumers) decision-making mode, the strategy of consumers seriously weakens the decision-making behaviour of the incumbent and causes the incumbent to obtain the lowest profit, but at the same time, the competitiveness of the entrant is enhanced to a certain extent, thereby rendering its profit higher than that in the NN (nonstrategic firm facing nonstrategic consumers) decision-making mode.

With the development of motorized spindle, the cooling effect and the distribution of cooling capacity become the crucial problem of cooling system. An optimization method for ThermoElectric-based Cooling System (TECS) is proposed based on the conservation of energy to distribute the cooling capacity. The main strategy of the proposed optimization method is to make the cold and heat input at different regions of the spindle sleeve equal in real-time through optimizing the contact area between the Heat Conduction Sleeve (HCS) and spindle sleeve. The numerical simulation and thermal characteristics experiments are carried to verify the effect of the proposed optimization method and the TECS. The simulation and experimental results show that the maximum temperature rise and thermal elongation of the TECS-based motorized spindle are reduced 56.7% and 58.6% compared with water-cooled motorized spindle, and the temperature distribution of the spindle sleeve is more uniform. It is meaningful to improve the accuracy of motorized spindle.

In product sales with network externalities, a Stackelberg game model is established with a new product and an existing product in the market, investigating the influence of first-mover strategy and non-strategic pricing model on the pricing, market share, and profit of an enterprise. Furthermore, the influence of network externalities and transfer costs on the strategies of latecomers is studied. Finally, the market equilibrium is analyzed. The results show that under the strategic pricing, the first entrant grabs the market share with low price and low profit in the first stage, to obtain greater network externalities in the second stage, enhance the competitiveness with latecomer, and make the total revenue greater. Given network externalities and transfer costs, the strategic behavior of the first entrant makes it harder for the later entrant to enter the market.