The Duopoly Analysis of Graphics Card Market

TL;DR

This paper analyzes the duopoly market of graphics cards, showing how technological progress impacts competition, cost reduction, and product diversification, ultimately influencing enterprise profits and innovation incentives.

Contribution

It introduces a model linking technological progress to profit maximization and competitive dynamics in the graphics card duopoly market.

Findings

Technological progress significantly boosts profits in the industry.

Monopolistic firms face intense competition due to technology intensity.

Innovation incentives are driven by profit maximization goals.

Abstract

By analyzing the duopoly market of computer graphics cards, we categorized the effects of enterprise's technological progress into two types, namely, cost reduction and product diversification. Our model proved that technological progress is the most effective means for enterprises in this industry to increase profits. Due to the technology-intensive nature of this industry, monopolistic enterprises face more intense competition compared with traditional manufacturing. Therefore, they have more motivation for technological innovation. Enterprises aiming at maximizing profits have incentives to reduce costs and achieve a higher degree of product differentiation through technological innovation.