Evolutionary Game Analysis on Strategies in “Main Manufacturer–Supplier” Mode Considering Technology Docking and Price Concluding under Competition Condition

Abstract

This paper analyses the strategies of the substitutable suppliers competing to collaborate with a main manufacturer in “main manufacturer–supplier” (M-S) mode. In the research and development (R&D) of complex products, only one supplier can be chosen for one kind of part as a long-term collaboration partner with the manufacturer. The competition between substitutable suppliers focuses on the technology docking and price-concluding strategies. In this paper, one original supplier as the first-mover and one new supplier as the second-mover chose between the two strategies sequentially to compete for the collaborative preference of the manufacturer. We also took the delay cost brought by strategy changing into the consideration of the risks, which the suppliers and the manufacturer should prepare to share. With evolutionary game theory applied, we can conclude that the initial costs have little impact on suppliers’ making decisions, while the initial prices are correlated with both suppliers’ decision making. Results also show that hesitation and fluctuation periods exist in suppliers’ decision making, which have a relationship with existing strategy conditions, initial prices, and the cost caused by modifying the part. These results provide practical and reasonable managerial implications for M-S collaboration.