A Game-theory based Model for Analyzing E-marketplace Competition

Abstract

The current e-marketplace provides many tools and benefits that bring sellers and buyers together, and promote trading within cyberspace. And due to certain unique features of e-commerce, the competition also takes on characteristics different from those found in traditional commerce. This paper analyses both the competition between sellers, and the stable state in e-marketplace through a proposed model that applies evolutionary game theory. The purpose is to better understand these relations and the current state within emarketplace, as well as provide a tool for sellers to increase their profits. Here, the sellers are divided into four categories based on their scale (Large, Small) and sales strategy (Aggressive, Conservative). By developing Asymmetrical Competition Game Model in E-Marketplace (ACGME) in Nash Equilibrium, we analyze the composition of different sellers and how this proportion is affected by asymmetry among sellers. Finally, we conduct a simulation experiment to verify the effectiveness of our proposed model. Table 1: Four competition models in the e-marketplace. Large vs. Large Large vs. Small Small vs. Large Small vs. SmallThe rest of this paper is structured as follows. The next section references and discusses literature 650

A game of perceived risk in social commerce transactions – A suggestion for the integration of the trust (payment) feature on social commerce platform sales

“…Hereby, he revealed that home appliance companies should pay attention to technology and product innovation to get out of the price war trap and maintain the market competition environment. Jianya et al (2015), on the other hand, used game theory to construct a competitive model in e-commerce between small and large firms in terms of generating sales strategy. In another study, (Lv et al 2022) adopted the evolutionary game theory to stimulate multiple complex live streaming e-commerce networks.…”

Comportamiento de los agentes en el comercio electrónico según modelos de localización

“…¿Qué mejor herramienta para su análisis que la Teoría de Juegos? Se puede analizar la competencia entre productores en el mercado electrónico a través de modelos de juego de competencia asimétrica en E-Marketplace (acgme, por sus siglas en inglés) que aplican la Teoría de Juegos evolutivos con el propósito de entender las relaciones existentes y proveer una herramienta que ayude a los productores a incrementar el beneficio (Jianya, Weigang y Li, 2015). La guerra de precios excesiva causa destrucción del ambiente del mercado y genera pérdida de la confianza del consumidor; utilizando la Teoría de Juegos y el método de información de análisis económico se propone tratar el patrón de competencia y la posibilidad de coordinación de precios en la industria de electrodomésticos en China (Hu y Tang, 2014).…”

Evolutionary Game Analysis For Sustainable Environment Under Two Power Generation Systems

“…Besides, there was a lot of application on asymmetric games, such as parasitic relationships 33) , the battle of the sexes 34) , animal conflicts 35) , and social variation [36][37][38][39] . Many researchers had conducted their research and analysis on the behavior of the environment [40][41][42] , pollution [43][44][45] , enterprise [46][47][48][49][50] , cyberspace 51) , water resources management 52,53) , and wind-water system 54) , based on the evolutionary game theory.…”