A dynamic competition simulation for worldwide big-size TV market using lotka-volterra model

Wu Tung Terry Chen, Yi-Ming Li, Chih-Young Hung

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

Technological innovation is characterized by the substitution of new technologies for full-fledged ones in the development of new products, processes and techniques. Global TV market is seeing a price down-spiral for FPD(Flat Panel Display)-TVs, replacement of CRT by LCD, and consumer's defection to larger screen. The LCD-TV market started in Japan from 2003 and took off globally from 2005. LCD panel production is moving toward larger sizes. In the 35″-39″ size market, the price/performance ratio of LCD-TV is better than that of PDP. The purpose of this paper is to estimate the demand function of worldwide big-size (35″-39″) TVs including LCD and PDP with an explicit consideration of market competition. The demand function was estimated using Lotka-Volterra model, a famous competitive diffusion model. The results exhibit a kind of predator-prey relationship, in which the PDP market was hunted by LCD product. In addition, the coefficients of difference equations of Lotka-Volterra model in this analysis are also used to forecast the future market of the big-size LCD and PDP.

Original languageEnglish
Title of host publicationComputational Methods in Science and Engineering - Advances in Computational Science, Lectures Presented at the Int. Conference on Computational Methods in Science and Engineering 2008, ICCMSE 2008
Pages509-513
Number of pages5
DOIs
StatePublished - 2009
Event6th International Conference on Computational Methods in Sciences and Engineering 2008, ICCMSE 2008 - Hersonissos, Crete, Greece
Duration: 25 Sep 200830 Sep 2008

Publication series

NameAIP Conference Proceedings
Volume1148 2
ISSN (Print)0094-243X
ISSN (Electronic)1551-7616

Conference

Conference6th International Conference on Computational Methods in Sciences and Engineering 2008, ICCMSE 2008
Country/TerritoryGreece
CityHersonissos, Crete
Period25/09/0830/09/08

Keywords

  • Lotka-Volterra model
  • product competition
  • simulation and forecast

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