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Title: |
Internal Pricing Mechanism of Firm under Price and Quality Competition |
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Source: |
International Conference on Engineering and Business Management 2012(Part 2 Enterprise Operation and Management（2）)
(pp 1020-1023)
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Author(s): |
Hui Man, University of Electronic Science and Technology of China, Chengdu, China, 610054
Xingzheng Ai, University of Electronic Science and Technology of China, Chengdu, China, 610054 |
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Abstract: |
Based on the competitive environment of price and quality among firms, this study focuses on the achievements of three-tariff mechanism in manufacturing department and marketing department. Through comparing the centralized model with the decentralized one, we explore the equilibrium of internal decision mechanism and the improvement of firm’s performance. The conclusions show that three-tariff mechanism can coordinate the conflict between manufacturing department and marketing department, and stimulate the two departments simultaneously. In addition, when the competition intensity of price and quality fluctuates within a proper range, the overall improvement of the firm’s performance can also be achieved.
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