Tripartite dynamic competition and equilibrium analysis on global television market

This study intends to investigate the tripartite competition among CRT, LCD and PDP TV by means of the quarterly shipments of 30- to 45-in. TV. The Lotka–Volterra competition diffusion model has been adopted to conduct the empirical analysis with the Lyapunov function to carry out equilibrium and stability. The results indicate that adopting this model can lead to good performance. The price dropping of LCD TV is greater than that of CRT and PDP TV. The severe dropping in the price of LCD TV leads to its higher growth rates. With respect to the equilibrium and stability analysis, PDP and LCD TV will coexist in the TV market and reach a stable equilibrium, while CRT TV will disappear from the 30- to 45 in. TV market.

► CRT TV has a positive influence on the growth rate of both PDP TV and LCD TV.
► Existence PDP TV has a negative influence on both the CRT and LCD TV growth rates.
► Growth of LCD and PDP are far greater than CRT, LCD growth is higher than PDP TV.
► The possibility of a fall in price for LCD TV is one advantage of the product.
► The shipments of 30- to 45-in. LCD and PDP TV will converge to their equilibrium.