The Game Theoretical Model for the “Go Global” Strategy of Chinese Ship Building Industry

Abstract

Ding, S., 2019. The game theoretical model for the “go global” strategy of Chinese ship building industry. In: Gong, D.; Zhu, H., and Liu, R. (eds.), Selected Topics in Coastal Research: Engineering, Industry, Economy, and Sustainable Development. Journal of Coastal Research, Special Issue No. 94, pp. 416–421. Coconut Creek (Florida), ISSN 0749-0208.This paper studied the “go global” strategy of ship building industry in China. This paper proposed two game models to analyze the situation faced by the ship building industry in China. The paper first considered the “country selection” problem (CS problem) to shed light on the situation when trying to find a right partner to fulfill the “go global” strategy. The results showed the conditions that guarantee the go global cooperation becomes a dominant strategy Nash Equilibrium. Then, the paper considered the “product or technology” problem (POT problem) to discuss the “go global” mode, i.e. what should be exported to the other country. The results showed that even technology export may generate more payoffs to China, the more likely cooperation mode will be the product export. Based on the results of the paper, some practical suggestions have been made to the “go global” strategy. As far as we know, this paper is the first paper which studies the “go global” strategy of Chinese ship building industry by game theory.