Probabilistic selling strategy study based on dynamic evolution game theory

Under duopoly retailers controlling products selling background in differentiated-quality product markets, we analyse the strategies of duopoly retailers with probabilistic selling (PS) or traditional selling (TS), by using Hotelling model and dynamic evolution game theory. The results show that duopoly retailers strategy choice are affected by the recognition level of consumers for probabilistic selling and the degree of difference between differentiated-quality products as well as considering other special type consumers' demands. That is if the recognition level of consumers for probabilistic products are big enough to make up for their the difference degree between the products, then consumers will choose probabilistic product; otherwise, the consumers will choose traditional products. The retailers should adopt to mixed strategies for the uncertain consumers, the consumers who don't consume probabilistic products completely and other special type consumers. These results have some guiding significance for PS practices. © 2017, Editorial Board of Journal of Systems Engineering Society of China. All right reserved.