An evolutionary game analysis on stability of the cooperation relationship in virtual enterprises

This paper explores the background and characteristics of virtual enterprises, the cooperation motivation in virtual enterprises. Then we study the stability of the cooperation based on the noisy polymorphic population replicator dynamic model, and analyze how the uncertainty caused by the fierce rivalry or other outside factors influences the cooperation strategy of the member enterprises. The result indicates that the uncertainty caused by the market opportunity or the competition makes the enterprises feel insecure, and they have to cooperate with others to withstand the risk and pressure that come from the environment. Finally, the results are applied to the personal computer market, where the personal computer manufacturers and the suppliers constitute a typical virtual enterprise.