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Modelling competition in global LCD TV industry

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  • Bi-Huei Tsai
  • Yiming Li

Abstract

This work analyses global shipments of Liquid Crystal Display Televisions (LCD TVs) by considering mutualism among multiple generations of LCD TVs. In applying the revised Lotka-Volterra equations, this study analyses the dynamic competitive relationship among producers of 26-, 32- and 37-inch LCD TVs. Equilibrium analysis is used to evaluate whether future shipment orbit could converge to equilibrium status. The prediction abilities of Bass growth model and Lotka-Volterra model are further compared to examine whether the Lotka-Volterra model, which incorporates the mutualism among multi-generation LCD TVs, performs better. The result shows that the relationships between 26- and 32-inch LCD TVs, and 37- and 32-inch LCD TVs are commensal. Sales of 32-inch LCD TVs are promoted by increased sales of 26- or 37-inch LCD TVs. Results of the equilibrium analysis indicate that competition among various sizes of LCD TVs will not be stable. The interactions among multiple generations of LCD TVs will influence each other, leading to great fluctuations in sales. Since this study incorporates the interactive relationships among various sizes of LCD TVs in the proposed Lotka-Volterra equations, the ability of the Lotka-Volterra model to predict the market evolution of LCD TVs is superior to that of the Bass model.

Suggested Citation

  • Bi-Huei Tsai & Yiming Li, 2011. "Modelling competition in global LCD TV industry," Applied Economics, Taylor & Francis Journals, vol. 43(22), pages 2969-2981.
    • Handle: RePEc:taf:applec:v:43:y:2011:i:22:p:2969-2981
    DOI: 10.1080/00036846.2010.530222
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    References listed on IDEAS

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    Cited by:

    1. Tsai, Bi-Huei & Chang, Chih-Jen & Chang, Chun-Hsien, 2016. "Elucidating the consumption and CO2 emissions of fossil fuels and low-carbon energy in the United States using Lotka–Volterra models," Energy, Elsevier, vol. 100(C), pages 416-424.
    2. Zhang, Sufang & He, Yongxiu, 2013. "Analysis on the development and policy of solar PV power in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 21(C), pages 393-401.
    3. Munier, Nathan, 2016. "“The one who controls the diamond wears the crown! The politicization of the Kimberley Process in Zimbabwe”," Resources Policy, Elsevier, vol. 47(C), pages 171-177.
    4. Tang, H.S. & Kraatz, S. & Qu, K. & Chen, G.Q. & Aboobaker, N. & Jiang, C.B., 2014. "High-resolution survey of tidal energy towards power generation and influence of sea-level-rise: A case study at coast of New Jersey, USA," Renewable and Sustainable Energy Reviews, Elsevier, vol. 32(C), pages 960-982.
    5. Holley, Elizabeth A. & Mitcham, Carl, 2016. "The Pebble Mine Dialogue: A case study in public engagement and the social license to operate," Resources Policy, Elsevier, vol. 47(C), pages 18-27.
    6. Pao, Hsiao-Tien & Fu, Hsin-Chia, 2015. "Competition and stability analyses among emissions, energy, and economy: Application for Mexico," Energy, Elsevier, vol. 82(C), pages 98-107.
    7. Bi-Huei Tsai, 2017. "Predicting the competitive relationships of industrial production between Taiwan and China using Lotka–Volterra model," Applied Economics, Taylor & Francis Journals, vol. 49(25), pages 2428-2442, May.

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