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In recent decade, new marketing paradigms have been evolved in the competitive environments. Among others, group discounting, known as group buying deals, has been introduced as a new approach to attract customers. Group buying is proposed to create groups of buyers for purchasing together in a lower price by which the profit margin of the seller is reduced, while the quantity of sold products is increased resulting in a more overall profit for the seller and a more consumer surplus for the customers. Although group buying is a new popular business mechanism whereby customers are encouraged to cooperate, but not all customers in a market tend to joint groups since the time or costs needed to communicate may be large for them. In addition, if the group purchasing is not profitable, the seller could not sell his product in this style. Therefore, many sellers sell their products introducing both group price and individual price. In this study, using a game theoretic approach, the competition between two sellers in selling two substitutable products is examined. The customers are classified into two classes, collectivists and individualist depending on consumer preferences. The collectivist customers are those whose cost of finding or creating a group is low, while the individualists are those who should pay more cost to find, or put more time and efforts to make or joint a group. Considering the competition between the sellers, two individualistic dominant and collective dominant markets will be examined. Each seller must declare the size of the group in order to sell their product in a group way and the group price must be lower than the individual price. Given the pricing under various factors such as inventory and market symmetry, the profits of both sellers will also be analyzed. All the steps are presented in two scenarios so that in Scenario 1, the market potential and price sensitivity of the customers are considered equal for both sellers but in Scenario 2, potential demand and price sensitivity of the customers demand for the sellers are different. The aim of this research is to examine the behavior of the duopoly sellers in different market conditions. That is, assuming different market conditions and inventory levels, individual and group equilibrium prices and their corresponding profits will be analyzed for two scenarios. In spite of presenting the analytical results, numerical experiment is carried out to show some managerial insights. Analytical results show that in markets with a dominant collectivist customer base, which joint a group is easy for most customers, group pricing is not efficient for sellers, and they only will provide the posted retail price. Whereas in individualistic dominant market where group formation is difficult for most costumers, individual and group prices are offered simultaneously. Numerical results demonstrate that when the sensitivity parameter to the competitor price increases, the seller's profits increases.
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