Evolution delayed decision game based on carbon emission and capacity sharing in the Chinese market

Abstract

Based on the carbon emission policy and low-carbon capacity sharing, this paper studies the optimal product pricing and capacity matching strategies of competition and cooperation between two companies in a duopoly market. And the optimal strategies with or without capacity sharing are discussed. In addition, a differential game model based on carbon emission constraints, low-carbon capacity sharing, and delayed decision-making is established. We also study the evolution of duopoly enterprises from the initial state to the equilibrium state. Besides, the influence of delayed decision variables, price adjustment speed and decision weights on the stability of the game system is analyzed. The results show that the government can effectively intervene and guide the enterprises’ low-carbon production strategy through carbon emission restriction policy. Low-carbon capacity sharing is beneficial to both enterprises, and the demand side benefits more than the supply side. We discuss the impact of stable and unstable systems on enterprises’ decisions. When the system is stable, enterprises can converge from different initial game states to equilibrium states. The adoption of a delay strategy will not affect the tendency of convergence to the equilibrium. Furthermore, the system using the variable feedback control method is of higher stability.

KEYWORDS:

• Carbon emission constraints
• low-carbon capacity sharing
• delayed decision
• evolutionary game

Disclosure statement

No potential conflict of interest was reported by the author(s).

Data availability statement

The data that support the findings of this study are available from the corresponding author, [Ma], upon reasonable request.

Additional information

Funding

This work was supported by the National Natural Science Foundation of China [grant number 71571131].

Notes on contributors

Junhai Ma

Junhai Ma is a Professor of Management science and engineering, system science and engineering in Department of Management & Economics, Tianjin University. His research interest is focus on supply chain management. He published many papers on these topics.

Fengshan Si

Fengshan Si is a Dr. Student at the college of management and economics in Tianjin University, China. His research interest is focus on supply chain management. His research interest includes the system control of economic market, simulation of complex system and machine learning using intelligent optimisation. College of Management and Economics, Tianjin University, Tianjin 300072, China.

Qin Zhang

Qin Zhang is an associate Professor of Management science and engineering, system science and engineering in the Department of Management & Economics, Tianjin University, Tianjin, China. Her research area is mainly about complex dynamic game and carbon emission in the supply chain system. And she has published many papers on these topics.

Huijiang

Hui Jiang is a Student at the college of management and economics in Tianjin University, China. His research interest is focus on supply chain management. He published many papers on these topics.