Analysis of Price and Differentiation Strategies in Triopoly Market with different Game Structures

Based on the Salop model with endogenous market power,price and differentation strategies under Bertand-Nash and Bertrand-Stackelberg game structures are sdudied.The results show that when uniform pricing is chosen three firms obey "maximized defferention" principle under Bertrand-Nash game structure. Bertrand-Stackelberg model will degenerate to be Hotelling model,in which the equiliabrium is the two late-movers agglomerate and at one of the end of the lines with the first-mover.The leading firm prefer to price rather than follow.When discrimination pricing is chosen the profit is improved and the dependence on differentation and prcing in advance are relieved,which will encourage more firms to choose discriminatory pricing.