The paper considers one approach to modeling the behavior of manufacturers of innovative products and their competitors in the market. The mathematical problem of choosing price strategies of manufacturers of products, taking into account information about changes in demand and prices for them, is posed. An algorithm for solving this problem has been implemented. Initially, when determining the price of a new product, information about the demand and prices of competitors is used. To determine the demand for a new product, the classical model of the diffusion of innovations by F. Bass is used. When a new product appears on the market and its further diffusion, the problem arises of managing prices for a new product and for competing ones. To solve it, it is proposed to consider a two-level combination of problems: one for finding prices and demand for a new product, and the second for determining the pricing strategies of other manufacturers. The parameters of the Bass model are identified, the assessment of the adequacy of the model is obtained, the combination of problems is solved and the pricing strategy is proposed in the paper.

Original languageEnglish
Title of host publicationCybernetics Perspectives in Systems - Proceedings of 11th Computer Science On-line Conference, CSOC 2022, Vol 3
Subtitle of host publicationComputer Science On-line Conference
EditorsRadek Silhavy
Pages329-336
Number of pages8
DOIs
StatePublished - 5 Jul 2022
Event11th Computer Science On-line Conference 2022 - Online
Duration: 26 Apr 202230 Apr 2022
Conference number: 11
https://www.openpublish.eu/

Publication series

NameLecture Notes in Networks and Systems
Volume503 LNNS
ISSN (Print)2367-3370
ISSN (Electronic)2367-3389

Conference

Conference11th Computer Science On-line Conference 2022
Abbreviated titleCSOC
Period26/04/2230/04/22
Internet address

    Scopus subject areas

  • Control and Systems Engineering
  • Signal Processing
  • Computer Networks and Communications

    Research areas

  • Bass model, Mathematical models of innovation diffusion, New product, Price control problem, Price strategies

ID: 97350588