Analysis of dual business objectives and overconfidence supply chain complexity

LI Mengzhe; ABUDUREHEMAN·Kadeer; ZHAO Mingyu

Abstract：Based on the existence of technology spillover effect of manufacturers,considering that manufacturers have commercial goals of profit and market share and exhibit overconfidence behavior,a dynamic price game model of a technology spillover supply chain with dual commercial goals and overconfidence is established.Based on game theory and nonlinear dynamics theory,the equilibrium points and stability of the system were analyzed.In addition,the effects of price adjustment rate,the balance coefficient of business objectives,overconfidence,and technology spillover on the system's price,market share,and profit changes were analyzed through numerical simulation.The results show that the price adjustment rate,the balance coefficient of business objectives,overconfidence,and technological spillover have an impact on the stability and complexity of the manufacturer's price competition model.Overconfidence should be reasonably controlled within a certain range,the price adjustment rate and the balance coefficient of business objectives should be reasonably controlled,and strengthening technological spillover is beneficial to the healthy development of manufacturers and the healthy competition among manufacturers,maintaining the stability of product market prices,and effectively avoiding market chaos.