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

Author

Listed:
  • 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)

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.

Suggested Citation

  • Lei Wang & Chang Liu, 2020. "Evolutionary Game Analysis on Government Supervision and Dairy Enterprise in the Process of Product Recall in China," International Journal of Information Systems in the Service Sector (IJISSS), IGI Global, vol. 12(1), pages 44-66, January.
    • Handle: RePEc:igg:jisss0:v:12:y:2020:i:1:p:44-66
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    Cited by:

    1. Zhe Ouyang & Xiaojiao Wang & Yang Liu, 2024. "The use of corporate social responsibility in response to product‐harm crisis: How do stock market reactions matter?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(4), pages 3081-3097, July.

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