Research on the active mechanism of the inter-firm cooperative relationship strength based on the game theory

Abstract

The inter-firm cooperative relations strength (CRS) is an indicator, which measures the extent of cooperation-tightness between firms. Therefore, different CRS results in different business activities. This study, through a simple game model, analyzed the relations between Inter-firm CRS and some other indicators, such as the firm profits, business efficiency, cooperation-contribution, production, product similarity and prices, etc.. The author concluded three regular patterns including the diminishing marginal of cooperation-contribution, cooperation speculation, increasing profits by cooperation. And also proposed the following factors: Firstly, not only the tangible benefits but also the intangible ones after cooperation should be concerned by the firms when they take part in the action of cooperation. Secondly, in order to obtain a more reliable security guarantee, the relatively low efficiency firm should select the tighter cooperation relations. Thirdly, the altruistic behavior during the course of cooperating, which is win-win behavior, should be advocated. It can not only promote the deepening of cooperation relations, but also bring much more benefits to the firm itself. Fourthly, the cooperation should be happened between two firms which have different products. Finally, through cooperation between firms, the cost can be reduced and the capability be enhanced as well, therefore, cooperation is the only way for the development of firms. © 2011 Springer-Verlag Berlin Heidelberg.