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Article
Publication date: 28 February 2023

Shan Du

This paper aims to propose the mechanism of cross-network effect embedded, which can help cross-border e-commerce (CBEC) platforms strengthen cooperative relationships with…

Abstract

Purpose

This paper aims to propose the mechanism of cross-network effect embedded, which can help cross-border e-commerce (CBEC) platforms strengthen cooperative relationships with sellers more equitably and effectively by using the network structural characteristics of the platforms themselves.

Design/methodology/approach

A two-stage evolutionary game model has been used to confirm the influence factors. The mathematical derivation of evolutionary game analysis is combined with the simulation method to examine the role of cross-network effect in cooperation. The evolutionary game model based on the cross-network effect is proposed to achieve better adaptability to the study of cooperation strategy from the two-sided market perspective.

Findings

The evolutionary game model captures the interactions of cross-network effect and the influence factors from a dynamic perspective. The cross-network effect has a certain substitution on the revenue-sharing rate of SMEs. CBEC platforms can enhance the connection between consumers and the website by improving the level of construction, which is a good way to attract sellers more cost-effectively and efficiently.

Research limitations/implications

This study provides a new method for the validation of the cross-network effect, especially when data collection is difficult. But this method is only a numerical simulation. So the conclusions still need to be further tested empirically. Besides, researchers are advised to explore the relationship between the added user scale and the cross-network effect in some specificCBEC platforms.

Practical implications

This study provides a new method for the validation of the cross-network effect, especially when data collection is difficult. But this method is only a numerical simulation. So the conclusions still need to be further tested empirically. Besides, researchers are advised to explore the relationship between the added user scale and the cross-network effect in some specific CBEC platforms.

Originality/value

Investigations that study cooperation strategy from the cross-network effect perspective in CBEC are limited. The research figured out which influence factors are affected by the cross-network effect in cooperation. A two-stage evolutionary game model was proposed to explain the interaction of the factors. The evolutionary game analysis with a simulation method was combined to highlight the role of cross-network effect on cooperation strategy to give a deeper investigation into the sustainable cooperation ofCBEC.

Details

Kybernetes, vol. 53 no. 5
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 26 September 2023

Lunyan Wang, Mengyu Tao, Xiaowei An, Guanghua Dong, Yehui Huang and Haoyu Wang

The operation of water environment treatment Public-Private Partnership projects (WETP-PPP) is crucial to the project effectiveness. However, there are often problems in projects…

Abstract

Purpose

The operation of water environment treatment Public-Private Partnership projects (WETP-PPP) is crucial to the project effectiveness. However, there are often problems in projects that attach importance to construction and neglect operation management, which seriously affect the project operation effect. To ensure the good operation effect of the WETP-PPP, an evolutionary game model of the regulation strategy during the operation period of WETP-PPP is constructed.

Design/methodology/approach

An evolutionary game model of regulation is established which considers the government, the project company and the public in water environment treatment Public-Private Partnership projects (WETP-PPP). Five scenarios of equilibriums and the game's evolutionary stable strategies are analyzed, and the corresponding stability conditions are then obtained. Finally, through the simulation, the influence of different factors on the choice of the three-party strategy is analyzed.

Findings

First, the key factors that affect the evolution game are the regulation costs and performance rewards of the government, the project company's operation costs and penalties for opportunism and the public supervision costs and rewards. Second, in order to ensure the operation effect, the government needs the performance incentive from the superior government. Third, the public's supervision enthusiasm needs to be mobilized by the government. Last, the penalty strength of speculative operation should be strong enough to play a deterrent role.

Research limitations/implications

The theoretical research in this paper has some limitations. Initially, due to the large number of participants in WETP-PPP, in addition to the government department, the project company and the public studied in this paper, it also involves the consulting industry and financial institutions. In the future, more participants can be added to form four-party interest relationships and conduct four-party evolutionary game research. Second, the operation environment of WETP-PPP is complex and changeable, and various influencing factors are intertwined, the number of parameters involved in this paper is limited, and further detailed research is needed in the future.

Practical implications

Based on the evolutionary game theory, this article discusses the evolution law of the tripartite game behavior of the government department, the project company and the public, which is helpful to clarify the strategy evolution path of the tripartite in the WETP-PPP, and the generation condition and evolution mechanism of the equilibrium strategy of the tripartite game. The key parameters affecting the tripartite strategy selection are analyzed through simulation, which can provide reference for the government department to formulate relevant measures. At the same time, it broadens the application field of evolutionary games and supplements the research on the management mechanism of WETP-PPP during the operation period.

Social implications

Based on the evolutionary game theory, this paper introduces the supervision behavior of the public, which can provide a new perspective for researchers to conduct relevant research. Secondly, for the regulation during the operation of WETP-PPP, this paper can provide reference for the government department to establish a scientific public supervision system, improve the government supervision mechanism and other relevant measures, which can help promote the public supervision willingness, improve the regulation efficiency of the government and guide the project company to reduce speculation, so as to ensure the effect of water environment management.

Originality/value

This paper focuses on the regulation of WETP-PPP during the operation period to research interactions among the government, the project company and the public. Based on the analysis of the evolutionary game, some suggestions are put forward, such as perfecting the government regulation mechanism, optimizing the reward and punishment system for the project company and broadening the channels of public supervision. The research results of this paper can provide support for the government's regulation of WETP-PPP and ensure the project operation effect.

Details

Engineering, Construction and Architectural Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 24 August 2021

Yueling Xu, Haijun Bao, Wenyu Zhang and Shuai Zhang

Recently, the concept of financial technology (FinTech) has attracted extensive attention from international organisations and regulators, in particular, how to achieve a…

Abstract

Purpose

Recently, the concept of financial technology (FinTech) has attracted extensive attention from international organisations and regulators, in particular, how to achieve a “win–win” situation between financial institutions' FinTech innovation and effective regulation has become a hot topic. This study purposes to explore the evolutionary game relationship between FinTech innovation and regulation by constructing both static and dynamic earmarking game models.

Design/methodology/approach

A simulation experiment was conducted using primary data obtained from a commercial bank in China.

Findings

The results of the theoretical analysis of evolutionary game models were consistent with the corresponding simulation results, proving the validity of the proposed evolutionary game models. It was also found that the dynamic earmarking game model was more stable and effective than the static earmarking game model in promoting FinTech innovation and regulation. Furthermore, when the regulators utilised a dynamic earmarking mechanism, the evolutionary path of financial institutions and regulators' behaviour strategies took the shape of a spiral and eventually converged to a central point, indicating the existence of an evolutionary stable strategy and Nash equilibrium. Finally, because the behaviour strategies of financial institutions were mainly influenced by the regulators' policies, the regulators were inspired to adjust the corresponding regulation policies on FinTech innovation.

Originality/value

This study bridges the knowledge gap in the existing literature on financial innovation and regulation, in particular by establishing evolutionary game models from the perspective of financial earmarking policies. Also, the case study for simulation experiments can gain a more intuitive insight into FinTech innovation and financial earmarking policies.

Details

Industrial Management & Data Systems, vol. 121 no. 10
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 21 September 2012

Ratul Lahkar

This article aims to provide an exposition of evolutionary game theory which can be used for pedagogical purposes.

1809

Abstract

Purpose

This article aims to provide an exposition of evolutionary game theory which can be used for pedagogical purposes.

Design/methodology/approach

The exposition is presented as a mathematical model in order to cover the formal underpinnings of evolutionary game theory. The paper aims to illustrate the theory using some simple examples.

Findings

The paper discusses population games and describes the notion of revision protocols that agents use to change strategies. As an example of an evolutionary dynamic, the paper discusses the replicator dynamic in detail. It shows convergence of this dynamic to Nash equilibrium in simple 2 strategy games. The paper then applies this dynamic to a particular class of 3 strategy games to establish the possibility on cyclical behavior around a Nash equilibrium.

Originality/value

The paper can serve as an educational briefing for students and researchers who are new to the field of evolutionary game theory.

Details

Indian Growth and Development Review, vol. 5 no. 2
Type: Research Article
ISSN: 1753-8254

Keywords

Article
Publication date: 28 October 2020

Danrong Song, Jinbo Song, Hehui Yuan and Yu Fan

With the growing demand for infrastructure and public services in recent years, PPP-UP have attracted a great deal of attention. However, while the user focuses on the payment for…

Abstract

Purpose

With the growing demand for infrastructure and public services in recent years, PPP-UP have attracted a great deal of attention. However, while the user focuses on the payment for use and the private sector is concerned with its return on investment, the public sector pays more attention to the efficient utilization of public funds. In order to analyze the willingness of each stakeholder to join PPP-UP, an evolutionary game model involving the three parties is constructed.

Design/methodology/approach

An evolutionary game model is established that considers the users and the public and private sectors in user-pay public-private-partnership projects (PPP-UP). Eight scenarios of equilibriums and the game's evolutionary stable strategies are analyzed, and the corresponding stability conditions are then obtained. A situation where all three players are willing to cooperate in theory is also examined. The key influencing parameters that affect cooperation behaviors are further discussed.

Findings

First, the results illustrate that by properly adjusting the influencing factors, the cooperation status among the three parties can be changed along with certain evolutionary trends. Second, it is hard to modify unsatisfactory evolutionary stability by small changes in both the price compensation of and the construction and operation compensation. Third, it is necessary to involve the users in the decision-making process in PPP-UP and take their demands regarding benefits and payments into account.

Originality/value

In this paper, we focus on PPP-UP to research interactions among the public and private sectors and the users. Based on the analysis of the evolutionary game, to facilitate the successful implementation and development of a project, several conditions are needed to ensure tripartite cooperation. Several recommendations are then proposed for decision-makers in PPP-UP.

Details

Engineering, Construction and Architectural Management, vol. 28 no. 7
Type: Research Article
ISSN: 0969-9988

Keywords

Open Access
Article
Publication date: 29 July 2024

Wei Chen, Zengrui Kang, Hong Yang and Yaru Shang

The game strategies differ when different regions participate in the oil game. Under what circumstances will different participants choose cooperation or sanction strategies? This…

Abstract

Purpose

The game strategies differ when different regions participate in the oil game. Under what circumstances will different participants choose cooperation or sanction strategies? This is the core issue of this paper.

Design/methodology/approach

Regarding the current and future game behavior between different regions in the oil trade, this paper constructs an evolutionary game model between two regions to explore the possibility of sanctions strategies between the two sides in different situations.

Findings

The research finds: (1) When the benefits of in-depth cooperation between the two regions are greater, both sides tend to adopt cooperative strategies. (2) When the trade conflict losses between the two regions are smaller, both sides adopt sanctions strategies. (3) When a strong region trades with a weak region, if the former adopts a sanctions strategy, the net profits are greater than the benefits of in-depth cooperation between the two regions. If the latter adopts a sanctions strategy, the net profits are less than the trade conflict losses between the two regions. There will be the strong region adopting a sanctions strategy and the weak region adopting a non-sanctions strategy. At this time, the latter should reasonably balance the immediate and future interests and give up some current interests in exchange for in-depth cooperation between the two regions. Otherwise, it will fall into the situation of unilateral sanctions by the strong against the weak.

Originality/value

There is no paper in the existing literature that uses the evolutionary game method to analyze the oil game problem between the two regions. This paper constructs a two-party evolutionary game model composed of crude oil importers and crude oil exporters and, based on this, analyzes the evolutionary stability between the two regions under sanctions and cooperation strategies, which enriches the energy research field.

Details

Modern Supply Chain Research and Applications, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2631-3871

Keywords

Article
Publication date: 27 September 2011

Yuan Yi‐jun and Lv Cui‐jie

The equipment manufacturing industry, as a strategic industry of China, is experiencing a transition from imitative innovation to independent innovation. The achievements of…

1100

Abstract

Purpose

The equipment manufacturing industry, as a strategic industry of China, is experiencing a transition from imitative innovation to independent innovation. The achievements of independent innovation have not been as good as could have been expected. Based on evolutionary economics, the purpose of this paper is to explore the evolutionary path of the two innovation modes, respectively, and analyze the internal and external factors that hinder the mutation from imitative innovation routine to independent innovation routine. According to the results of the evolutionary game model, several policy suggestions are proposed to promote the transition from imitative innovation to independent innovation.

Design/methodology/approach

This paper is based on the concepts of evolutionary economics. Routine, mutation, path dependence and selection are included in the analysis of the evolutionary path of the two innovation modes. Especially, the evolutionary game model of innovation modes selection is established to explain how internal and external conditions work in the transition.

Findings

The paper explores the evolutionary path of the transition from imitative innovation to independent innovation in the equipment manufacturing industry of China, and analyses the obstacles and factors (internal path dependence, and the lack of benefit incentive and external mutation conditions such as fiscal support and intellectual property protection) that hinder the mutation from imitative innovation routine to independent innovation routine. The results of the evolutionary game model show that the pursuit of the benefit (innovation return or the profit), as an internal mutation condition, is the most fundamental motivation for independent innovation, while policy incentives, as the external mutation conditions, have a significant impact on the evolutionary transition. According to the results, several policy suggestions are proposed to promote the transition from imitative innovation to independent innovation.

Originality/value

Taking the equipment manufacturing industry as a particular object, this paper tries to explain the evolutionary path and the obstacle factors of the transition from imitative innovation to independent innovation from the perspective of evolutionary economics, involving routine, mutation, path dependence, selection, and so on. The evolutionary game model of innovation modes selection is established to investigate the influence of these factors.

Article
Publication date: 12 July 2023

Ji Kai, Ming Liu, Yue Wang and Ding Zhang

Nucleic acid testing is an effective method of accurate prevention and control and a key measure to block the spread of the epidemic. However, the fraud in nucleic acid testing…

Abstract

Purpose

Nucleic acid testing is an effective method of accurate prevention and control and a key measure to block the spread of the epidemic. However, the fraud in nucleic acid testing occurred frequently during epidemics. This paper aims to provide a viable scheme for the government to strengthen the supervision of nucleic acid testing and to provide a new condition for the punishment for the negative act of the government and the upper limit of the reward for nucleic acid testing institution of no data fraud.

Design/methodology/approach

This paper formulates an evolutionary game model between the government and nucleic acid testing institution under four different mechanisms of reward and punishment to solve the issue of nucleic acid testing supervision. The authors discuss the stability of equilibrium points under the four distinct strategies and conduct simulation experiments.

Findings

The authors find that the strategy of dynamic reward and static penalty outperforms the strategies of static reward and static penalty, dynamic reward and static penalty, static reward and dynamic penalty, dynamic reward and dynamic penalty. The results reveal the appropriate punishment for the negative act of the government can enhance the positivity of the government's supervision in the strategy of dynamic reward and static penalty, while the upper limit of the reward for nucleic acid testing institution of no data fraud cannot be too high. Otherwise, it will backfire. Another interesting and counterintuitive result is that in the strategy of dynamic reward and dynamic penalty, the upper limit of the penalty for data fraud of nucleic acid testing institution cannot be augmented recklessly. Otherwise, it will diminish the government's positivity for supervision.

Originality/value

Most of the existing evolutionary game researches related to the reward and punishment mechanism and data fraud merely highlight that increasing the intensity of reward and punishment can help improve the government's supervision initiative and can minimize data fraud of nucleic acid institution, but they fall short of the boundary conditions for the punishment and reward mechanism. Previous literature only study the supervision of nucleic acid testing qualitatively and lacks quantitative research. Moreover, they do not depict the problem scenario of testing data fraud of nucleic acid institution regulated by the government via the evolutionary game model. Thus, this study effectively bridges these gaps. This research is universal and can be extended to other industries.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 20 April 2022

Xiaoyan Jiang, Haoyu Sun, Kun Lu, Sainan Lyu and Martin Skitmore

In China, external supervision on construction safety mainly comes from the government and supervision engineers (SEs). However, the construction safety supervisory mechanism…

Abstract

Purpose

In China, external supervision on construction safety mainly comes from the government and supervision engineers (SEs). However, the construction safety supervisory mechanism (CSSM) contains some dilemmas affecting the improvement of safety performance, such as the declining impact of SEs, the increasing rent-seeking behaviors of contractor and excessive government interference. This study aims to depict and analyze the CSSM in China from an evolutionary game view. The objectives are to understand the supervision strategy and evolutionary behaviors of different stakeholders, propose suggestions for improving safety performance and help the key safety supervision stakeholders, especially the government, formulate a suitable safety supervision strategy.

Design/methodology/approach

This research uses tripartite dynamic evolutionary game theory to study the CSSM in China and solve the stable equilibrium solution using system dynamics.

Findings

This study has revealed the game relationship of construction safety supervision mechanisms in China and solved the stable equilibrium solution. The results prove that a supervision engineer (SE) plays a crucial role in the CSSM, and “supervision engineer useless” is an unreasonable assertion. For government supervision agency (GSA), excessive inspection and free-market regulation are neither wise strategies. GSA can reduce the inspection frequency when general contractors (GCs) input high safety investments and SEs implement responsible supervision. But keeping proper government supervision to avoid GC's unlawful behaviors and SE's rent-seeking is indispensable. In addition, excessive governmental supervision will weaken SE's role, so the government should transfer some supervision powers to SE.

Originality/value

This study focuses on the dynamic evolution process between GSA, GC and SE. This method is different from most research that neglected the dynamic characteristic of system and game solution stability. The research methods not only contribute to construction safety supervision policy-making in China but also help to improve supervision efficiency in other countries and other fields.

Article
Publication date: 15 May 2024

Haize Pan, Bingfeng Yang, Yongwei Pan and Zhenhua Luo

As an effective measure for reducing energy consumption and achieving carbon neutrality, prefabricated building projects (PBPs) have attracted considerable attention in China…

Abstract

Purpose

As an effective measure for reducing energy consumption and achieving carbon neutrality, prefabricated building projects (PBPs) have attracted considerable attention in China. Although the Chinese Government has vigorously promoted PBPs, neither developers nor consumers have high recognition of PBPs. This study aimed to explore the decision-making behaviour of governments, developers and consumers in promoting the development of prefabricated buildings in China and to better optimise the incentive strategies for prefabricated buildings in China.

Design/methodology/approach

Based on prospect and evolutionary game theories, an evolutionary game model of three stakeholders in the development of PBPs – government, developers and consumers – was constructed. Combined with the system dynamics theory, the incentive policy behaviour and influencing factors of the three parties in the evolutionary game model were analysed.

Findings

The results showed that the initial probability of the three parties affects the decision-making behaviour of each party and that of other stakeholders. Government subsidies to developers are more sensitive than developers themselves. There is a certain threshold for the scope of government subsidies to consumers, and exceeding this threshold does not promote the development of PBPs. Based on the results, policy recommendations to the government, developers and consumers were proposed to enhance PBP development.

Originality/value

This study provides suggestions for governments to formulate reasonable incentive policies for prefabricated buildings and a specific theoretical basis for the sound development of prefabricated buildings.

Details

Engineering, Construction and Architectural Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0969-9988

Keywords

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