The Benefit Game Between CoPS Innovation User And System Integrators: Bidding And Incentive Model Simulation Analysis

Complex Products and Systems (CoPS) is one of the typical representative of the importance of emerged. The so-called complex systems products are those related to the high technology, single or small quantities of customized products, systems or infrastructure, such as large-scale computer, aerospace systems, intelligent transport systems and other capital goods. CoPS are increasingly becoming a modern economy "technology backbone" and the technological complexity of products is to become the symbol of the country's economic strength. In addition, large-scale R & D and manufacturing products with different and complex product development process involved in more complex stakeholders, which makes complex products system project more difficult, how to effectively coordinate the benefit game among the stakeholders (especially between CoPS user and system integrator) is the key to core of the success of the CoPS project. In this context, based on the idea of the game theory, the paper attempted to explore the benefit game between CoPS user and system integrator. The research work done by the author was illustrated as below:1. The project bidding and incentives is analyzed theoretically, the paper explores the game economics which involved in the project bidding game mechanism, the principal-agent theory which involved in the project incentives, and combines with the realities of bidding and tendering and related incentive principle, offers some ideas how to build CoPS project innovation bidding and incentives models, explores such methods to eliminate the phenomena which arises from adverse selection and moral hazard.2. This paper builds the CoPS innovation project bidding game model with the game theory which can solve the phenomenon of adverse selection or pursuing excess profit by colluding to raise the price which posed by information asymmetry, analyzes the game process between CoPS user and system integrator and among the system integrators by simulating the model, and explore some related game strategy.3. This paper builds the incentives model of CoPS User to System Integrator with the principal-agent theory of information economics, and makes use of Lingo 10 mathematical software and Excel.2003 to simulate the nonlinear optimization problem by quantitative approach, explores the innovation risk reliability of the system integrators and innovation output variance how to influence the optimal effort level of the system integrator,the incentive costs and agent costs of CoPS innovation user, and innovation increase revenue, and put forward relevant management recommendations.The main finds of this paper:the bidding market of CoPS project is the two-headed competitive bidding oligopoly market; the CoPS innovative user should not only concerned about pricing when you select the system integrator, but study all aspects of system integrators comprehensively, chooses the system integrator who enables the CoPS user to obtain the maximum benefit; in order to encourage system integrator to work hard in the process of CoPS project innovation, the CoPS user need to design an appropriate incentive mechanism, at the same time, due to the complexity characteristic of CoPS innovation, the CoPS user should examine the effect between innovation risk aversion or variance of system integrator and the incentive outputs, Both CoPS project innovation user and system integrator promote CoPS project innovation to success jointly.