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Research on the defense balanced prices′ calculation of compatibility about network products

Sheng Yongxiang1,2,Yang Weiguo1,Wu Weiguo1(1.School of Economics and Management,Jiangsu University of Science and Techology,Zhenjiang Jiangsu 212003,China)(2.School of Science,Jiangsu University,Zhenjiang Jiangsu 212013,China)  
Compatibility is very important to the producting and marketing of the network products.This paper constructs two types of consumer utility function,and creates a general model of duopoly compatibility.Also,it calculates the defense equilibrium prices,the profits of manufacturers,the utility of consumers,and the social welfare.Based on compatibility of three special models,which are the complete compatibility,the incomplete compatibility and one-way compatibility,we get the reasons of compatibility affecting the defense equilibrium prices,the profits of manufacturers,the utility of consumers,and the social welfare.Through analysis of bank ATM compatibility,some conclusions can be gotten.To manufacturers,producing compatible machine get more profits than that of uncompatible machine;to consumers,producing uncompatible machine get more values than that of compatible machine;to social welfare,producing compatible machine get more welfares than that of uncompatible machine.
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