scholarly journals Evolutionary Game Analysis on Strategies in “Main Manufacturer–Supplier” Mode Considering Technology Docking and Price Concluding under Competition Condition

Mathematics ◽  
2019 ◽  
Vol 7 (12) ◽  
pp. 1184
Author(s):  
Ming Zhang ◽  
Jianjun Zhu ◽  
Hehua Wang ◽  
Pei Liu
Keyword(s):  
Decision Making ◽  
Evolutionary Game Theory ◽  
Evolutionary Game ◽  
Game Analysis ◽  
Complex Products ◽  
Competition Condition ◽  
Managerial Implications ◽  
The Cost ◽  
First Mover

This paper analyses the strategies of the substitutable suppliers competing to collaborate with a main manufacturer in “main manufacturer–supplier” (M-S) mode. In the research and development (R&D) of complex products, only one supplier can be chosen for one kind of part as a long-term collaboration partner with the manufacturer. The competition between substitutable suppliers focuses on the technology docking and price-concluding strategies. In this paper, one original supplier as the first-mover and one new supplier as the second-mover chose between the two strategies sequentially to compete for the collaborative preference of the manufacturer. We also took the delay cost brought by strategy changing into the consideration of the risks, which the suppliers and the manufacturer should prepare to share. With evolutionary game theory applied, we can conclude that the initial costs have little impact on suppliers’ making decisions, while the initial prices are correlated with both suppliers’ decision making. Results also show that hesitation and fluctuation periods exist in suppliers’ decision making, which have a relationship with existing strategy conditions, initial prices, and the cost caused by modifying the part. These results provide practical and reasonable managerial implications for M-S collaboration.

scholarly journals Evolutionary Game Analysis of the Effects of Problem Size and the Problem Proposing Mechanism on the Problem Processing Mechanism in a New Main Manufacturer–Supplier Collaborative System

Mathematics ◽  
2019 ◽  
Vol 7 (7) ◽  
pp. 588
Author(s):  
Ming Zhang ◽  
Jianjun Zhu ◽  
Ponnambalam Kumaraswamy ◽  
Hehua Wang
Keyword(s):  
Game Theory ◽  
Decision Making ◽  
Evolutionary Game Theory ◽  
Evolutionary Game ◽  
Problem Size ◽  
Game Analysis ◽  
Collaborative System ◽  
Two Factors ◽  
Decision Making Processes ◽  
Processing Mechanism

This paper analyzed the effects of the problem size and the problem proposing mechanism on the decision-making processes, for the manufacturer and the supplier, regarding processing a problem in a new main manufacturer–supplier collaborative system using evolutionary game theory. Unpredicted problems may arise in the process of collaborative research and development (R&D) of complex products, like big passenger aircrafts, without any relative advanced contract, and either player will take risks to announce it. In addition to the factors of traditional cost and income, we take another two factors (i.e., the problem size and the problem proposing mechanism) into account in the examination of the problem processing mechanism. With evolutionary game theory applied, we can obtain the stable decision-making states of both players and how these two factors affect the problem processing mechanism. From the result, we find that the problem size has little effect on the two players’ decisions, while the problem processing mechanism has an impact when the experiences or the capacities of the manufacturer and the supplier are unbalanced. This paper contributes to manufacturer and supplier in a newly-established collaborative system to consider how to behave when unpredicted problems come.

An Analysis of Quality Liability Insurance for Prefabricated Components Using Evolutionary Game Theory

2021 ◽  
Author(s):  
Yan Liu ◽  
Chenyao Lv ◽  
Hong Xian Li ◽  
Yan Li ◽  
Zhen Lei ◽  
...  
Keyword(s):  
Game Theory ◽  
Evolutionary Game Theory ◽  
Evolutionary Game ◽  
Payoff Matrix ◽  
Liability Insurance ◽  
Insurance Companies ◽  
Social Benefits ◽  
Simulation Calculation ◽  
The Government

Managing quality risks of prefabricated components is one of the challenges for prefabricated construction. The Quality Liability Insurance for Prefabricated Components (QLIPC) is an effective approach to transfer such risks; however, limited research has been conducted regarding the development of QLIPC. This study introduces an Evolutionary Game Theory (EGT)-based approach incorporating decisions from both the government and insurance companies. In the EGT model, a payoff matrix under disparate strategies is constructed, and the evolutionary stable strategies (ESS) are deduced. The simulation calculation is then carried out by MATLAB using sample virtual data to demonstrate the analysis. The results show that the government should act as the game promoter because the QLIPC can reduce governance cost and has significant social benefits. This research contributes a theoretical framework to analyze the QLIPC development using the EGT theory, and it could help the government to make long-term strategies for developing the QLIPC market.

scholarly journals Game of neutrophils: modeling the balance between apoptosis and necrosis

2019 ◽  
Vol 20 (S6) ◽  
Author(s):  
Alva Presbitero ◽  
Emiliano Mancini ◽  
Filippo Castiglione ◽  
Valeria V. Krzhizhanovskaya ◽  
Rick Quax
Keyword(s):  
Game Theory ◽  
Immune System ◽  
Evolutionary Game Theory ◽  
Innate Immune System ◽  
Evolutionary Game ◽  
Innate Immune ◽  
Cost And Benefit ◽  
Delicate Balance ◽  
The Cost ◽  
Apoptosis And Necrosis

Abstract Background Neutrophils are one of the key players in the human innate immune system (HIIS). In the event of an insult where the body is exposed to inflammation triggering moieties (ITMs), neutrophils are mobilized towards the site of insult and antagonize the inflammation. If the inflammation is cleared, neutrophils go into a programmed death called apoptosis. However, if the insult is intense or persistent, neutrophils take on a violent death pathway called necrosis, which involves the rupture of their cytoplasmic content into the surrounding tissue that causes local tissue damage, thus further aggravating inflammation. This seemingly paradoxical phenomenon fuels the inflammatory process by triggering the recruitment of additional neutrophils to the site of inflammation, aimed to contribute to the complete neutralization of severe inflammation. This delicate balance between the cost and benefit of the neutrophils’ choice of death pathway has been optimized during the evolution of the innate immune system. The goal of our work is to understand how the tradeoff between the cost and benefit of the different death pathways of neutrophils, in response to various levels of insults, has been optimized over evolutionary time by using the concepts of evolutionary game theory. Results We show that by using evolutionary game theory, we are able to formulate a game that predicts the percentage of necrosis and apoptosis when exposed to various levels of insults. Conclusion By adopting an evolutionary perspective, we identify the driving mechanisms leading to the delicate balance between apoptosis and necrosis in neutrophils’ cell death in response to different insults. Using our simple model, we verify that indeed, the global cost of remaining ITMs is the driving mechanism that reproduces the percentage of necrosis and apoptosis observed in data and neutrophils need sufficient information of the overall inflammation to be able to pick a death pathway that presumably increases the survival of the organism.

Quality Disclosure Under Consumer Loss Aversion

2020 ◽  
Author(s):  
Jianqiang Zhang ◽  
Krista J. Li
Keyword(s):  
Decision Making ◽  
Social Welfare ◽  
Loss Aversion ◽  
Consumer Surplus ◽  
Quality Disclosure ◽  
Disclosure Decisions ◽  
Future Outcomes ◽  
The Cost ◽  
Firm Profit ◽  
First Mover

Consumers experience a sense of loss when a product’s quality does not match their expectations. To alleviate consumer loss aversion (CLA), firms can disclose information to reduce consumers’ uncertainty about product quality and the resulting psychological loss. In this paper, we investigate the implications of CLA on firm profit, consumer surplus, and social welfare when firms endogenously make quality disclosure decisions. We find that CLA leads symmetric firms to disclose quality more often. Given that CLA weakly reduces consumers’ utility from buying a product and quality disclosure is costly, intuition suggests that CLA is detrimental to firms. We find that this intuition is true only in a monopoly. Surprisingly, CLA makes both firms in a competition better off. Moreover, CLA increases firms’ profit when they invest in quality disclosure instead of money-back guarantees to respond to CLA. We also find that CLA decreases consumer surplus and social welfare. Therefore, educating consumers to improve decision-making skills by deliberating on future outcomes and emotions can benefit firms at the cost of consumers and society. When firms disclose quality sequentially, CLA can discourage the follower from disclosing quality. A strong level of CLA increases the leader’s profit over the follower’s, thereby encouraging firms to be the first mover in quality disclosure. This paper was accepted by Juanjuan Zhang, marketing.

Trust strategy simulation of corporation–NPO cross alliance using evolutionary game theory

Kybernetes ◽  
2017 ◽  
Vol 46 (3) ◽  
pp. 450-465 ◽  
Author(s):  
Yidan Chen ◽  
Lanying Sun
Keyword(s):  
Game Theory ◽  
Decision Making ◽  
Nonprofit Organizations ◽  
Bounded Rationality ◽  
Evolutionary Game Theory ◽  
Evolutionary Game ◽  
Stable State ◽  
Evolutionary Strategies ◽  
Content Type ◽  
Trust Relationships

Purpose The purpose of this paper is to investigate the dynamics and evolution of trust in organizational cross alliances. Design/methodology/approach In alliances between corporations and nonprofit organizations, trust in decision-making is a dynamic process. Using the replicated dynamics model of evolutionary game theory, this paper provides a trust decision model and analyzes four scenarios under different parameters. A numerical simulation is developed to present an intuitive interpretation of the dynamic development of trust decisions and the effects of incentive and punishment mechanisms. Findings Under different parameters, bounded rationality and utilities result in different but stable evolutionary strategies; the initial probability of adopting a trust strategy leads directly to whether participants adopt the strategy when the system reaches stability after continued games; and incentive and punishment mechanisms can significantly reduce the initial probability of adopting a trust strategy where the system evolves to meet stable state needs. Practical implications The establishment of trust relationships is an important influence on the stable and coordinated development of an alliance. The proposed model can help the alliance build closer trust relationships and provide a theoretical basis for the design of the trust mechanism. Originality/value Incentive and punishment bound by some degree of trust are introduced to address the problems of trust decisions and their dynamics; the model created reflects the bounded rationality and utility of each game stage. Useful evolutionary stable strategies using different variables are proposed to address the decision-making problems of trust in cross alliances.

scholarly journals Social evolution and genetic interactions in the short and long term

2014 ◽  
Author(s):  
Jeremy Van Cleve
Keyword(s):  
Game Theory ◽  
Evolutionary Game Theory ◽  
Social Evolution ◽  
Evolutionary Game ◽  
Genetic Interactions ◽  
Short Term ◽  
Hamilton’S Rule ◽  
Analytical Approaches ◽  
Hamilton's Rule

The evolution of social traits remains one of the most fascinating and feisty topics in evolutionary biology even after half a century of theoretical research. W. D. Hamilton shaped much of the field initially with his 1964 papers that laid out the foundation for understanding the effect of genetic relatedness on the evolution of social behavior. Early theoretical investigations revealed two critical assumptions required for Hamilton's rule to hold in dynamical models: weak selection and additive genetic interactions. However, only recently have analytical approaches from population genetics and evolutionary game theory developed sufficiently so that social evolution can be studied under the joint action of selection, mutation, and genetic drift. We review how these approaches suggest two timescales for evolution under weak mutation: (i) a short-term timescale where evolution occurs between a finite set of alleles, and (ii) a long-term timescale where a continuum of alleles are possible and populations evolve continuously from one monomorphic trait to another. We show how Hamilton's rule emerges from the short-term analysis under additivity and how non-additive genetic interactions can be accounted for more generally. This short-term approach reproduces, synthesizes, and generalizes many previous results including the one-third law from evolutionary game theory and risk dominance from economic game theory. Using the long-term approach, we illustrate how trait evolution can be described with a diffusion equation that is a stochastic analogue of the canonical equation of adaptive dynamics. Peaks in the stationary distribution of the diffusion capture classic notions of convergence stability from evolutionary game theory and generally depend on the additive genetic interactions inherent in Hamilton's rule. Surprisingly, the peaks of the long-term stationary distribution can predict the effects of simple kinds of non-additive interactions. Additionally, the peaks capture both weak and strong effects of social payoffs in a manner difficult to replicate with the short-term approach. Together, the results from the short and long-term approaches suggest both how Hamilton's insight may be robust in unexpected ways and how current analytical approaches can expand our understanding of social evolution far beyond Hamilton's original work.

scholarly journals The Impact of Penalty and Subsidy Mechanisms On The Decisions of Governments, Businesses, and Consumers During COVID-19 ——Tripartite Evolutionary Game Theory Analysis

2021 ◽  
Author(s):  
Yuxun Zhou ◽  
Rahman Mohammad Mafizur ◽  
Khanam Rasheda ◽  
Brad R. Taylor
Keyword(s):  
Game Theory ◽  
Evolutionary Game Theory ◽  
Virus Disease ◽  
Evolutionary Game ◽  
Initial Point ◽  
Evolutionarily Stable Strategies ◽  
Corona Virus ◽  
Evolutionary Stable Strategies ◽  
The Impact

Abstract Purpose – Based on the fact that punishment and subsidy mechanisms affect the anti-epidemic incentives of major participants in a society, the issue of this paper is how the penalty and subsidy mechanisms affect the decisions of governments, businesses, and consumers during Corona Virus Disease 2019. The goal of this paper is to understand strategic selections from governments, enterprises, and consumers to maximize their respective utility during Corona Virus Disease 2019, and the impact of penalty and subsidy mechanism on the decisions of governments, businesses, and consumers.Design/Methodology/approach - This paper proposes a tripartite evolutionary game theory, involving governments, businesses, and consumers, to firstly analyze the evolutionary stable strategies and to secondly analyze the impact of penalty and subsidy mechanism on their strategy selection during Corona Virus Disease 2019. Thirdly, this paper uses numerical analysis to simulate the strategy formation process of governments, enterprises, and consumers in Japan and India based on their different penalty and subsidy mechanism.Findings – This paper suggests that there are four evolutionarily stable strategies corresponding to the actual anti-epidemic situations of different countries in reality. We find that different subsidy and penalty mechanisms lead to different evolutionary stable strategies. If governments, enterprises, and consumers fighting the pandemic together, the government need to set a low subsidy mechanism and a high penalty mechanism.Originality/value - There are some limitations in the literature, such as long term strategies, rational hypothesis, and convergence path analysis in higher dimensional evolutionary game theory. This paper fills the gap and extends the theory of COVID-19 management theory. Firstly, this paper has important practical significance. This paper finds out the long-term equilibrium strategies of governments, businesses, and consumers under Corona Virus Disease 2019, which can provide an important theoretical and decision-making basis for pandemic prevention and control. Secondly, our paper extends the analytical paradigm of the tripartite evolutionary game theory. We extend the analysis of the dynamic process from the initial point to the convergence point and make a theoretical contribution to the development of high-dimensional evolutionary game theory.

Long-term Hydropower Pricing in the Spot Market with Evolutionary Game Theory

2020 ◽  
Vol 103 (sp1) ◽  
pp. 117
Author(s):  
Liling Lin ◽  
Chaorong Huang ◽  
Linfeng Zhao
Keyword(s):  
Game Theory ◽  
Evolutionary Game Theory ◽  
Evolutionary Game ◽  
Spot Market
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