Competition and Game of the Pre-Installed Market and Post-Installed Market of the Internet of Vehicles from the Perspective of Cooperation

Chaohui Zhang, Yijing Li and Yishan Zhang
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Chaohui Zhang: School of Business, Jilin University, Changchun 130012, China
Yijing Li: School of Business, Jilin University, Changchun 130012, China
Yishan Zhang: Centre for Quantitative Economics, Jilin University, Changchun 130012, China

Sustainability, 2020, vol. 12, issue 3, 1-21

Abstract: The Internet of Vehicles market is broadly divided into two parts—the pre-installed market and the post-installed market. Although they possibly have cooperative relationships, there is a competition game between them in terms of interests, and a healthy game relationship can promote the optimization of products and the overall improvement of the service level in the Internet of Vehicles market. Through the evolutionary game model, this article analyzes the dynamic game process between the pre-installed market and the post-installed market of the Internet of Vehicles, explores the various evolution trends of the Internet of Vehicles market from the perspective of cooperation, and combines the numerical simulation analysis to study the three possible evolutionary trends and corresponding steady states. The results show that, when the cooperation ratio is relatively high, both sides of the game are in the cyclical competition and game, which is the optimal competition state of the Internet of Vehicles market. On the contrary, any kind of “steady state” is unfavorable to the overall market. Therefore, all parties should be encouraged to establish a deeper level of cooperation and jointly promote the further prosperity of the Internet of Vehicles market in the process of cooperation and competition.

Keywords: Internet of Vehicles; Pre-installed Market; Post-installed Market; Evolutionary Game Theory (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
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