q

Genuine manufacturers provide product quality and other secondary levels, which is the decision variables of genuine manufacturers

p i

i = 1 , 2 , Genuine (pirated) product price, that is, genuine (pirated) vendor decision variables;

d i

i = 1 , 2 , Genuine (pirated) vendor demand, and assumed market capacity is 1

v

Consumers’ valuation of the quality of genuine products

β

The consumer’s preference for product network externality, the increase of unit demand to consumer utility

α

The discount rate, that is, the consumer’s evaluation of pirated products is a discount on the value evaluation of genuine products, 0 < α < 1