Evolutionary Game of the Civil-Military Integration with Financial Support

Abstract

How to provide financial support efficiently is becoming an essential way for military enterprises to take the strategy of Civil-Military Integration (CMI) in China. In this paper, we used the evolutionary game theory to build a model for military enterprises to choose the approach of the CMI with financial support. After derivation and simulation of the model, the results showed that the profit and cost from the CMI or the financial support changes could cause the different evolutionary stable states (ESS). Setting the financial support degree in a relevant range could encourage firms to participate in the CMI and reduce the spillover. Besides, the initial proportion of military enterprises that choose the CMI could affect and predict the trend of future development, which provides a reference for policy-makers.