Does massive placement of bicycles win the market for the bicycle-sharing company in China?

Abstract

The rise of bicycle-sharing stimulated companies' investment in a large number of bicycles in the market. However, it is important to balance the massive placement of bicycles in the market and the company's sustainable development. This paper is motivated to identify a strategic balance between market expansion and the sustainable development of the company. Based on the information asymmetry and evolutionary game theory, a tripartite game model was established for the government, enterprise, and consumer. This study identified five evolutionary stability strategies (ESSs) of these three parties under specific conditions by analyzing their decision-making behavior. The results indicated that the number of bicycles in the market placed by a bicycle-sharing enterprise was not directly proportional to its profit. The quantity of bicycles needed on the market was influenced by the government and consumers. It also found that government regulation plays a dominant role in the development of the bicycle-sharing company regarding the number of bicycles needed in the market.