Volume 11 Number 6 (Jun. 2016)
Home > Archive > 2016 > Volume 11 Number 6 (Jun. 2016) >
JSW 2016 Vol.11(6): 589-597 ISSN: 1796-217X
doi: 10.17706/jsw.11.6.589-597

Market Entry Game Application in e-Commerce

Zheng Jianya, Li Weigang*

TransLab, Department of Computer Science, University of Brasilia, Campus Darcy Ribeiro, Brasilia-DF, Brazil.

Abstract—Decision-making of market entry and incumbents defense is one of the most important issues in business activities as well as the research hotspot in academic community. This paper adopts game theory to study market-entry decisions of e-retailers in e-marketplace environment. All e-retailers are classified into two categories: one belongs to “giants” who have a great quantity of investments and aim to earn large profits. Another belongs to “dwarfs” who invest not so much and are less eager to make profit. To study the different characters between them and make entry decision in virtual business world, an e-commerce market entry game model is proposed. Using this model, a simulation of market entry decision is formed and a game tree is drawn to analyze the equilibrium. In addition to pure strategy equilibriums, the mixed strategy equilibriums are also analyzed to explore the probability of entrance into the market. Finally, through quantitative analyses, the proposed model demonstrates effective application for e-commerce context and meaningful advice for entrants to make entry or exit decision.

Index Terms—Differentiation, e-commerce, e-retailers, game theory, market entry decision.

[PDF]

Cite: Zheng Jianya, Li Weigang, "Market Entry Game Application in e-Commerce," Journal of Software vol. 11, no. 6, pp. 589-597, 2016.

General Information

ISSN: 1796-217X (Online)
Frequency:  Quarterly
Editor-in-Chief: Prof. Antanas Verikas
Executive Editor: Ms. Yoyo Y. Zhou
Abstracting/ Indexing: DBLP, EBSCO, CNKIGoogle Scholar, ProQuest, INSPEC(IET), ULRICH's Periodicals Directory, WorldCat, etc
E-mail: jsweditorialoffice@gmail.com
  • Apr 26, 2021 News!

    Vol 14, No 4- Vol 14, No 12 has been indexed by IET-(Inspec)     [Click]

  • Nov 18, 2021 News!

    Papers published in JSW Vol 16, No 1- Vol 16, No 6 have been indexed by DBLP   [Click]

  • Dec 24, 2021 News!

     Vol 15, No 1- Vol 15, No 6 has been indexed by IET-(Inspec)   [Click]

  • Jan 04, 2024 News!

    JSW will adopt Article-by-Article Work Flow

  • Dec 06, 2019 News!

    Vol 14, No 1- Vol 14, No 4 has been indexed by EI (Inspec)   [Click]