Abstract
For the long-term sustainable development, the modern enterprises should consider both competition and cooperation. In the current studies of corporate competition strategies and games, the quantification of cooperation-competition (coopetition) between enterprises is not deeply investigated. In this paper, we establish a coopetition game model of oligarchic enterprises in the industry by using the quantitative altruistic factor and nonlinear cost function, analyze the influence of altruistic factor on equilibrium variables, and then validate it in the generation side market. The following conclusions are drawn: (1) the coopetition of any form will increase the market equilibrium price and the total equilibrium profit of the industry, which induces the motivation and intention of cooperation between oligarchic enterprises. (2) The increased unilateral altruism is instable and unsustainable because it will produce an altruistic threshold that makes the total equilibrium profit of the industry increase and then decrease. The unilateral altruism of high-cost generation companies is more beneficial for increasing the total equilibrium profit of the industry, but it is realized in a difficult way. Due to a higher initial altruism level, there is lack of motivation for the increased unilateral altruism. (3) The mutually altruistic coopetition is the most effective way for improving the total equilibrium profit of the industry, but it is hard to finally achieve the complete monopoly because of cost differentiation. (4) The established game model of generation market is more universal and provides a certain quantitative interpretation for electricity crisis.
Highlights
In the market economy, the enterprises intend to present a competitive or confrontational relationship and pay more attention to their maximum profits
Is paper consists of the following parts: Section 1 introduces study background and significance; Section 2 shows literature review; Section 3 establishes a coopetition model for oligarchic enterprises in the industry based on the altruistic preference and the nonlinear cost function; Section 4 discusses the impact of altruistic factor on the equilibrium variables and its sustainability under the model equilibrium; Section 5 provides validation and analysis on the coopetition relationship between oligarchic generation companies of different costs in the power market; Section 6 carries conclusions and prospect
Based on the conclusion of Proposition 2 in Section 4, the mutually altruistic coopetition between oligarchic generation companies can lead to the fluctuation of total power output, which will disturb the power demand and electricity purchasing plan of power users, increasing the uncertainty risk of bilateral market and harming the safe running and deployment of power grid
Summary
The enterprises intend to present a competitive or confrontational relationship and pay more attention to their maximum profits. Is study aimed to establish a coopetition utility function considering both self-profit and others’ profit by introducing slightly altruistic factor (a quantitative index of moderate cooperation) into the noncooperative game model and regarding oligarchic enterprises in the industry as a coopetition system. Is paper consists of the following parts: Section 1 introduces study background and significance; Section 2 shows literature review; Section 3 establishes a coopetition model for oligarchic enterprises in the industry based on the altruistic preference and the nonlinear cost function; Section 4 discusses the impact of altruistic factor on the equilibrium variables and its sustainability under the model equilibrium; Section 5 provides validation and analysis on the coopetition relationship between oligarchic generation companies of different costs in the power market; Section 6 carries conclusions and prospect. We validated the coopetition equilibrium results and quantitative coordination methods between old and new generation companies in an altruism-based coopetition game model and provided a certain quantitative interpretation for the related electricity crisis
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