Analysis of Dynamic game with government subsidy in the telecommunication industry

Abstract

With the development of the telecommunication industry, 5G service has become the core focus point in every country. This paper establishes a three-oligarchs game model in the Chinese communication service industry to study the oligarch game of communication service based on the 5G service and the influence of relevant government policies. Combined with the game theory and complex system theory, this paper analyzes the three oligarchs in the Chinese telecommunication industry from static and dynamic games perspectives. Firstly, the government's incentives and subsidies are conducive to enhancing the 5G service level in telecommunication oligarchs. Secondly, the cost subsidy and lump-sum incentive will have different impacts on the stability of the dynamic system; Thirdly, the government's incentive and subsidy are not conducive to the enthusiasm of enterprises' desire to get profit. Therefore, the government should not over encourage and subsidize mature enterprises when making relevant decisions and could fully consider the proportions of different incentives and subsidies when making decisions, combined with the actual demand situation to achieve the best effect.