Open AccessOptimal Pricing and Assembly Rate for Prefabricated Construction Assembler with Subsidy Policy
Author(s) -
Wen Jiang,
Xian Qi
Publication year - 2020
Publication title -
iop conference series. materials science and engineering
Language(s) - English
Resource type - Journals
eISSN - 1757-899X
pISSN - 1757-8981
DOI - 10.1088/1757-899x/780/7/072036
Subject(s) - subsidy , profit (economics) , prefabrication , business , industrial organization , government (linguistics) , profit rate , economics , engineering , microeconomics , civil engineering , market economy , linguistics , philosophy
With the development of the construction industry, assembly construction has received an increasing number of attention. The government introduced subsidy policy to promote prefabricated construction. We have considered subsidy into the traditional prefabricated construction, in which case decision on retail pricing and construction assembly rate will be complicated. We discussed the impact of subsidy policy on assembler pricing and assembly rate. The paper finds that subsidy policy can lower the retail price of prefabricated construction and increase the assembly rate, the assembler must control the cost factor for increasing assembly rate within a certain range to obtain higher profit.