Price tactics are becoming more important as competition is getting keener. And right price tactics can maximize profit under dynamic business environments. Most companies are doing business under competition. So, every business decision making proces...
Price tactics are becoming more important as competition is getting keener. And right price tactics can maximize profit under dynamic business environments. Most companies are doing business under competition. So, every business decision making process should consider competitors, because competitors` decisions can lead to unexpected results. Therefore we have to understand competitive price pattern and analyze how price adjust tactics effect to performance. Unfortunately, classical duopoly theory suffers from essential flaw; namely it attempts to capture equilibrium conditions associated with dynamic phenomena using essentially static models. Previous papers studied about numerically optimized solution. But this paper suggested about pattern and behavior of two competing firms by making decision making process dynamically changed and business environments uncertain, and how to react to these situation, using price adjust tactics.