Game Analysis of Manufacturers and Gray Market Speculators Under Different Government Policies

Fang Zhang, Qianqian Zhang

2022

Abstract

This article aims to explore the impact of different government policies on the sales of licensed products by manufacturers and the sales of parallel products by gray market speculators. A market structure with manufacturers as dominant players and gray market speculators as followers is established. Based on the Stackelberg game approach, three scenarios are considered in which the government does not implement a policy, the government implements a subsidy policy for manufacturers, and the government implements a regulatory policy for gray market speculators. In the three cases, the influence of government subsidy amount and supervision intensity on the equilibrium solution of manufacturers and gray market speculators is solved and compared. Research shows that when the government implements subsidy policies, both manufacturers and gray market speculators will reduce the unit sales price of their products. When the government implements regulatory policies, manufacturers will increase the unit sales price of licensed products, and gray market speculators will reduce the sales price of parallel products. Regardless of whether the government implements subsidies or regulatory policies, it will increase the after-sales service level, sales volume and profits of manufacturers, and reduce the sales and profits of gray market speculators.

Paper Citation

in Harvard Style

Zhang F. and Zhang Q. (2022). Game Analysis of Manufacturers and Gray Market Speculators Under Different Government Policies. In Proceedings of the 2nd International Conference on Public Management and Big Data Analysis - Volume 1: PMBDA; ISBN 978-989-758-658-3, SciTePress, pages 42-52. DOI: 10.5220/0012069800003624

in Bibtex Style

@conference{pmbda22,
author={Fang Zhang and Qianqian Zhang},
title={Game Analysis of Manufacturers and Gray Market Speculators Under Different Government Policies},
booktitle={Proceedings of the 2nd International Conference on Public Management and Big Data Analysis - Volume 1: PMBDA},
year={2022},
pages={42-52},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0012069800003624},
isbn={978-989-758-658-3},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 2nd International Conference on Public Management and Big Data Analysis - Volume 1: PMBDA
TI - Game Analysis of Manufacturers and Gray Market Speculators Under Different Government Policies
SN - 978-989-758-658-3
AU - Zhang F.
AU - Zhang Q.
PY - 2022
SP - 42
EP - 52
DO - 10.5220/0012069800003624
PB - SciTePress