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A Dynamic Evolutionary Game Model of Modular Production Network

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  • Wei He

Abstract

As a new organization mode of production in the 21st century, modular production network is deemed extensively to be a source of competitiveness for lead firms in manufacturing industries. However, despite the abundant studies on the modular production network, there are very few studies from a dynamic perspective to discuss the conditions on which a modular production network develops. Based on the dynamic evolutionary game theory, this paper constructs a model, which incorporates several main factors influencing the development of modular production network. By calculating the replicator dynamics equations and analyzing the evolutionary stable strategies, this paper discusses the evolution process of cooperation strategies of member enterprises in a modular production network. Furthermore, by using NetLogo software to simulate the model, this paper verifies the effectiveness of the model. From the model, we can find that the final stable equilibrium strategy is related to such factors as the initial cost, the extra payoff, the cooperation willingness of both parties, the cooperation efforts, and the proportion each party can get from the extra payoff. To encourage the cooperation of production integrator and modular supplier, some suggestions are also provided.

Suggested Citation

  • Wei He, 2016. "A Dynamic Evolutionary Game Model of Modular Production Network," Discrete Dynamics in Nature and Society, John Wiley & Sons, vol. 2016(1).
    • Handle: RePEc:wly:jnddns:v:2016:y:2016:i:1:n:6425158
    DOI: 10.1155/2016/6425158
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    References listed on IDEAS

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    Cited by:

    1. Peng, Chen & Zhang, Yunsheng & Lai, Liubin, 2026. "The moderating role of modularity in the relationship between technological turbulence and dominant design influence held by patent pools," Technology in Society, Elsevier, vol. 84(C).

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