On the Rise of Overseas Purchasing Industry from the Perspective of Price Discrimination and Game Theory

Abstract

With the rapid development of China's e-commerce industry, the consumption level of Chinese consumers and the demand for high-quality foreign products continue to increase, which has led to the emergence of overseas purchasing industry. This paper mainly combines the theory of price discrimination and game theory, from the perspective of merchants and buyers, and explains why the overseas purchasing industry can take advantage of the price advantage. The study found that price discrimination cannot always be contained, because from the perspective of "rational people", its application in purchasing has achieved a "win-win" between consumers and merchants, thus improving the public welfare. However, starting from the overall long-term welfare, China should strengthen industry supervision, establish a formal purchasing system, improve relevant legal systems, improve the e-commerce tax system, and establish domestic duty-free shops to promote the sustainable and healthy development of the overseas purchasing industry.