Networked Markets Competition of Product Families with Module Commonality
To examine the marketed competition of product families with module commonality,a networked Cournot competition model of product families is con-structed,and its equilibrium is solved based on matrix analysis.Then,the effects of demand for each product variant,unit production cost,and module commonality on the networked equilibrium are analyzed,and it is found that their effects on net-worked equilibrium are all related to the networked structure,and there are ripple effects related to the network structure in the networked markets.Next,we analyze the adjustment of the strategy for each firm and the change of the consumer surplus in the network under two ways of change in network structure,namely,the addition of new product variety and the alliances by firms.It is found that:1)The addition of new product variety by the firm is unfavorable(favorable)to firms that have(haven't)supplied the same product variety as itself;2)The addition of new product variety by the firm may reduce the total consumer surplus in the network due to the existence of module commonality;3)The better the module commonality,the more effective of market expansion for the firm by adding new product variety;4)The equilibrium of the alliance by firms must exist,and a firm should choose the firms that supplying the same product varieties as itself to the alliance.
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