Analysis of E-Commerce Sales under Repeated Game

Abstract

Under the background of continuous and rapid development of e-commerce, this paper applies the theory of repeated game to analyze the establishment and maintenance of transaction relationship between e-stores and consumers. While consumers pursue the maximum utility value of products, enterprises pursue the maximum profit, which leads to the separation and equilibrium in the transaction process. The paper explores ways to safeguard the benefit of consumers and maximize the long-term profits of stores by establishing a profit function.