An Evolutionary Study of Production Decision of Firms with Bounded Rationality
Gao Yan
Shi Kui-ran
Abstract：The standardization and customization decisions of two types of firms with the assumption of con -sumer heterogeneity both in product attributes and firm preference are studied .By introducing product va-riety and customization level , an evolutionary game model is presented to study the evolution of production decision of firms with bounded rationality .Theoretical analysis and numerical examples show that the evo-lutionary equilibrium outcome depends on the effect of the firms'operational status as well as the degree of customer's intensity about product variety and customization level .Meanwhile , an index signifying the rela-tive attractiveness of standardization and customization strategies is developed , which provides theoretical base for production mode choice of the firms .
Keywords：mass customizationproduct varietycustomization levelevolutionary game
Publication Date：2015-01-01
Online Publishing Date：2025-08-15(First online date of this platform, not the publication date of the document)
Pages：6( 63-68 )