Evolutionary Game Analysis on Value Co-creation of Product Service System

Abstract

Abstract: In order to solve dynamic cooperation and competition strategy selection problem both of manufacturers and users, the PSS cooperation evolution game model is constructed. By considering the whole life cycle of PSS system, this paper makes a 2-phase analysis of the two sides evolutionary stable strategy, namely, the pre delivery phase of the product under non trust conditions and post product delivery phase under mutual trust. The results show that there are multiple local evolutionary equilibrium related to the benefits and costs in the stable strategy of cooperation between two sides. Under non trust conditions, the two sides may have free riding behavior, which, has negative impact on their follow-up cooperation; under trust conditions, income regulation strategy can effectively reduce free riding behavior, but can’t fully explain the endogenous mechanism of value co-creation. Therefore, through an analysis of the model of the micro collaborative efforts of both sides, it is found the regulation at the macro and micro collaborative efforts return together can make value co-creation towards sustainable cooperation. Finally, the model is tested by numerical simulation.

Key words: product service system, value co-creation, evolutionary game

Hu Youlin, Han Qinglan. Evolutionary Game Analysis on Value Co-creation of Product Service System[J]. Management Review, 2021, 33(6): 242-254.

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