Consumer-Centered Collaborative Governance of Regional Business Environment

Tingting Xiang and Hongzhi Lin ()
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Tingting Xiang: School of Economics and Management, Southeast University, Nanjing 211189, China
Hongzhi Lin: School of Economics and Management, Southeast University, Nanjing 211189, China

Mathematics, 2025, vol. 13, issue 15, 1-17

Abstract: Optimizing the regional business environment plays a crucial role in improving the market supply structure, enhancing market dynamism, and boosting consumer welfare. Investigating how the government can effectively improve the business environment and promote consumer welfare through scientific and strategic investment allocation is a topic that warrants comprehensive and in-depth research. This paper proposes a bi-level programming model based on consumer welfare, with the upper-level model focusing on optimizing the government’s investment allocation strategy to maximize consumer welfare, and the lower-level model addressing the spatial price equilibrium problem after improving the business environment. The experimental results confirm the effectiveness and practicality of the proposed algorithm. The findings reveal that the bi-level programming model, integrating simulated annealing and projection algorithms, provides support for governments in accurately determining investment allocation strategies, enabling the simultaneous maximization of consumer welfare and optimization of the business environment. Additionally, increased government investment significantly improves both the business environment and consumer welfare, while appropriately managing the intensity of investment further enhances consumer welfare. This study offers valuable theoretical insights and practical guidance for governments to refine investment decisions, foster business environment development, and improve societal well-being.

Keywords: bi-level programming; business environment; consumer welfare; spatial price equilibrium; variational inequality (search for similar items in EconPapers)
JEL-codes: C (search for similar items in EconPapers)
Date: 2025
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