The interaction of the market competition between LCD TV and PDP TV

The size of CRT TV has always been limited by their bulk. However, the introduction of flat plane display TV has led to much larger screens, new rounds of technological innovation, largescale investment and an increasing share of the consumer market. Moreover, this development has spurred competition for market share between LCD TV and PDP TV. This study intends to investigate the dynamic competitive relationship between PDP TV and LCD TV by means of the quarterly shipment of TV. The Lotka-Volterra competition diffusion model has been adopted to conduct the empirical analysis, with the Lyapunov function used to carry out equilibrium and stability analysis. The result illustrates that there is good fitting performance in adopting this model. In the competitive relationship we can regard the LCD TV as a prey and the PDP TV as the predator. Nevertheless, the possibility of dropping the price of LCD TV is an advantage, which can be noted in the higher growth rate compared to PDP TV. With respect to the equilibrium and stability analysis, 30- to 39-in. and 40- to 49-in. PDP TV will not disappear from the market, but will instead reach stable equilibrium with LCD TV.

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