Abstract: Using the game theory method and considering the existence of quality preference of consumers, a study is conducted on whether or not government intervention will have an impact on the quality level and production capacity of photovoltaic supply chain in different decision-making situations. The analysis results show that the government can reduce backward production capacity and increase advanced production capacity by setting penalty coefficient within a certain range. However, if the penalty coefficient is not set properly, it will also lead to the withdrawal of efficient production capacity from the market. The decision conditions of supply chain cooperation are most favorable to the improvement of product quality, while the decision conditions of integrator cooperation are most unfavorable to the improvement of product quality.

Key words: game theory, government intervention, PV (photovoltaic) supply chain, quality preference