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Evolutionary Game Analysis of Competition Strategy Choice of Two Types of Retail Enterprises

Juan Ding

Abstract

The paper analyzes the evolutionary process of behavior of two types of retail enterprises in the same market by using evolutionary game theory.Evolutionary equilibrium characteristics of two types of enterprises′ strategy choice are analyzed according to the replicator equation of two types of enterprises′ competition strategy.And the main parameters′s affect to the enterprises competition strategy choice is also analyzed.The result shows that the enterprises′ comparative strength and the product of two enterprises′ competition cost play an important role in evolution of enterprises′ behavior.

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Available abstract

Key concepts: Competition (biology), Industrial organization, Evolutionary game theory, Game theory, Microeconomics, Business, Replicator equation, Evolutionarily stable strategy