Analyzing reciprocity dynamics in supply chains of public goods: a stochastic evolutionary game approach

Abstract

To start with an infinitely repeated game of supply chains of public goods, a stout reciprocity mechanism is introduced into income games to build a matric dynamic equation. The conventional evolutionary game method is employed to propose a model called the evolutionary game for the cooperative strategy of both the manufacturer and the seller groups in the supply chain of public goods. Also, white Gaussian noise (WGN) is added to reflect random interference in the evolution process. Then, a stochastic dynamic system is established, and Ito’s differential equation is used to analyze both sides’ strategy evolution in a game, interpret changes in system stability when random disturbance is added, and finally test the influence of different situations on the system stability by running a numerical simulation. The research shows that the stronger the reciprocity coefficient is, and the system is subjected to random interference, the greater the strategy choice change in players’ decision-making procedures when the repeated game of public goods is conducted.