Industrial Engineering Journal ›› 2014, Vol. 17 ›› Issue (3): 6-12.

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An Analysis of Evolutionary Game on the Behavior of User Innovation

  

  1. School of Management, Wuhan University of Technology, Wuhan 430070, China
  • Online:2014-06-30 Published:2014-07-14

Abstract:  Based on a connection of principalagent theory and consumer surplus, the motivation and purpose of user innovation are analyzed. It is viewed as a complement to manufacturer innovation and an efficient approach to realize users differentiated demands. Meanwhile, under the hypothesis of bounded rationality, the behavior of user innovation  is explored by using evolutionary game. Results show that two evolutionary stable strategies exist. Also, it is found the motivation factors from firms and external organizations have a positive impact on user innovation.

Key words: user innovation, bounded rationality, evolutionary game, Pareto improvement