Profit Distribution Game of Virtual Enterprise Based on Side Payment

The profit distribution is the key factor of formation and operation of virtual enterprises while the fair allocation of cooperative surplus is the foundation of the success of the cooperative game.Based on the profit distribution model and the correlative game theory,this paper proposes a side payment incentive mechanism to optimize expected profit.In the condition of the side payment,this paper suggests that both the effort level of enterprises and the virtual enterprise's expected revenue have been improved,which means the mechanism is effective.To proceed,applying the Distribution Theory and Nash Bargaining Game,a rational sharing plan about the cooperation surplus which created by cooperative game is provided to meet the individual rationality and collective rationality,which is a feasible agreement.