Complexity Analysis of a Triopoly Cooperation‐Competition Game Model in Convergence Product Market

Abstract

This work considered a tripartite cooperation-competition game model for the convergence product market, whose products are compounds of two base products or services. An early convergence product firm monopoly in this market and two potential entrants from the base products decide to cooperate with another to compete with the monopolist. We analyzed factors that affect existence and local stability of the Nash equilibrium. Rich nonlinear dynamic behaviors like bifurcation, chaos, and attractors are presented to explain the complex relationships between the three players. Results showed that the pulling effect on profit for the united R&D activity can significantly enlarge the stable region. Too frequently adjusted price strategy will bring the system into chaos. A parameter feedback control method is given to control the chaotic system and we numerically verified its effectiveness. This study has significant values to understand the fluctuations in related convergence product market.

Research on Co-Opetition Mechanism between Pharmaceutical Enterprises and Third-Party Logistics in Drug Distribution of Medical Community

“…Guo, S et al (2019) studied the fashion supply chain, composed of one manufacturer and two competing retailers, and obtained the best green level of the market through competition and cooperation games [15]. Zhao, L et al (2017) studied the tripartite cooperationcompetition game model for the convergence product market and proposed rich nonlinear dynamic behavior to explain the complex relationship between the three participants [16]. Yang, W et al (2022) studied the co-opetition strategy between the manufacturer of a proprietary component (MPC) and the original equipment manufacturer (OEM), analyzed the optimal cooperation strategy of MPC, and showed that the existence of third-party suppliers was the key factor in their competition and cooperation behavior through the model [17].…”