Evolutionary Game Analysis on Government Supervision and Dairy Enterprise in the Process of Product Recall in China

Lei Wang and Chang Liu
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Lei Wang: School of Economics and Management, Northeast Agricultural University, Heilongjiang Province, China
Chang Liu: School of Economics and Management, Northeast Agricultural University, Heilongjiang Province, China

International Journal of Information Systems in the Service Sector (IJISSS), 2020, vol. 12, issue 1, 44-66

Abstract: On the basis of stating recall and regulation mode, this paper analyzes long-term evolutionary trend between dairy enterprise and government supervision on bounded rationality with evolutionary game. The authors use Python matplotlib to simulate research results. Studies show that it is helpful to build a standard recall system of defect and dairy products. This system should reduce the costs of government supervision. In addition, in case of mandatory recall, it should strengthen punishment intensity of the government supervision branch on dairy enterprise, increase more losing costs of dairy enterprise, and decrease external environment benefits of dairy enterprise. In case of voluntary recall, the system should encourage various strategies and subsidy of the government supervision branch on dairy enterprise and amplify social influence of dairy enterprise. Especially, the paper puts forward detailed strategies for dairy enterprise.

Date: 2020
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