q | Genuine manufacturers provide product quality and other secondary levels, which is the decision variables of genuine manufacturers |
| , Genuine (pirated) product price, that is, genuine (pirated) vendor decision variables; |
| , Genuine (pirated) vendor demand, and assumed market capacity is 1 |
v | Consumers’ valuation of the quality of genuine products |
| The consumer’s preference for product network externality, the increase of unit demand to consumer utility |
| The discount rate, that is, the consumer’s evaluation of pirated products is a discount on the value evaluation of genuine products, |