Cooperation in Global Modular Production Network: an Analysis Based on Game Theory and Evolution Model

Abstract

On the basis of modular decomposition of a product system, different intermediate products are assigned to different enterprises and then integrated to form a global modular production network. There are two types of information mechanism in modular production network, private information encapsulation and system information assimilation, which lead to super innovation ability and high market adaptability. A guarantee mechanism is needed to maintain cooperative order in modular production network. Fairness and strong reciprocity are necessary conditions to extend cooperation scope among modules from different countries. Strong reciprocity refers to equipotent exchange of benefits and damages. Because of complete credit relations, cooperation among modules is further expanded. Reputation is an important incentive and constraint mechanism in modular production network. Reputation capital can get corresponding returns for modules. Credit constraints can further develop modular division, expand cooperation range, reduce transaction cost and improve economic efficiency.