An evolutionary game model of localized product customization cooperation between domestic and foreign enterprises based on core parts trade

An evolutionary game model for core components deal and localized product customization cooperation between domestic and foreign enterprises is firstly established. Then, localized product customization cooperation characteristics and associated factors are analyzed. The results show that the evolutionary direction and velocity of their behaviors are influenced by the initial state, cooperation income, income share proportion, customization cost, cost allocation proportion, escaping profit, and net income of one side that unilaterally insists on customization cooperation. Moreover, the penalty due to contract violation possesses constraints on cooperation. A fair proportion of revenue and cost sharing is a very important condition for sustainable customization cooperation for a long time. Based on the above analysis, some optimal strategies are put forward. Finally, the influence of associated factors on cooperation equilibrium is simulated by a numerical experiment.