Study On The Model Of Asymmetric Evolutionary Game About Sales Promotion Incentive Between Supplier And Retailer

With the expansion of economic globalization and ever-changing market demand, retailers are facing increasingly tough competition in the market, which make them do greater efforts to increase their own market share in the proceeds to expand. As the promotion methods are used to enhance the market demand, the cost will be higher at the same time, which may make the retailer's marketing initiative be frustrated, so it is only through to maintain or enhance the enthusiasm. Suppliers can put up some means to increase the enthusiasm of retailers to raise the level of their promotional efforts so as to increase market sales. Then, the way to incentive retailers to make more market- ing efforts, as well as the extent of incentive, to make the best total revenue for both sides is the question that suppliers and retailers need to be addressed. In recent years, scholars at home and abroad are using the classic game theory to study the problem, but this method is always with some defects out of the actual. However, evolutionary game theory can overcome these shortcomings which, make analysis be more closer to reality, so this article use evolutionary game theory to study the issue .Firstly, this article introduces the theoretical basis and literature review that the main content to be involved. After the introduction of the theories about the supply chain Incentive and the evolution game theory, the article summarizes the research achievements and the existing shortcomings on the suppliers's sales promotion incentive to the retailers.Secondly, this article explains the meaning of promotional incentives characteri- stics ,which includes the host-guest, goal and connotation of the promotional incen- tives from supplies to retailers. Then according to the basic idea of the promotional incentives from supplies to retailers, this article analyses the factors that is related to the stimulate sales in theroy. Both analysis are used to provide theoretical support for the construction and solving of the following main model.According to evolutionary game theory and the analysis on the characteristics and factors of promotional incentives . This article first defines the basic assumptions and parameters related to the model . Then constructs a non-symmetrical evolutionary game model of promotional incentives from supplies to retailers under asymmetric information environment .Thirdly, solves the model by applying the replicator dynamic and gain the corresponding solution. In order to verify the feasibility and increase the availability of the model,system corresponding to the sales promotion incentive is designed in computer language and verified by the numerical examples.