Research on Competitive Mechanism of Pricing in Electronic Commerce

The electronic commerce (EC) has fundamentally changed the environment of business, has gained attention as a major theme for enterprises to keep their competitiveness. Research on price competition and strategic behaviors in electronic commerce has advantaged improvement competitiveness of EC firms. This paper applies the game theory to study the pricing strategy of commodities in E-commerce. Firstly, this paper provides the concept of attractiveness for electronic commerce system and analyses some factors for promoting attractiveness. Then develops a price competition model in the same system attractiveness, solves solution of equilibrium in a competitive state and analyses sensitivity of some parameters for this model, and when two competitors are in the different attractiveness, optimization pricing problem is a classic model for shop site selection.