Research On The Process Of Trust Evolution In The Venture Capital Syndication Network

Venture capital syndication network (VCSN) extends the boundaries of venture capital (VC) institutions and improves the operation efficiency of the VC industry. At the same time, the VCSN brings out opportunistic behaviors, such as free-riding and conspiracy. Constructing cooperation based on trust will provide impetuses for VC institutions'information sharing and synergic collaboration, and protection for the VCSN's efficient operation. So, the research on trust evolution in the VCSN is an important subject worthy studying.According to the VC theory, evolutionary game theory and trust evolution theory, based on the replicator dynamics and the Wright-Fisher process, we propose general models of multi-strategy trust evolution in the VCSN, deduce explicit evolutionary stability conditions of the two-strategy model, and simulate the trust evolution process of the two-strategy and the four-strategy models. We reach the following findings:(1) Based on the replicator dynamics, we study the process of trust evolution in the VCSN. Firstly, we propose a general multi-strategy trust evolution model based on the replicator dynamics. Then, we explore the process of trust evolution for the two-strategy and the four- strategy models, and the influence of the incentive mechanism on the evolutionary stability conditions. Finally, we construct the global profit function of the VCSN participants, and adopt simulation experiments to verify the two-strategy and the four- strategy models.(2) Based on the Wright-Fisher process, we study the process of trust evolution in the VCSN. Firstly, we introduce the Wright-Fisher process into the replicator dynamics and propose a general multi-strategy trust evolution model based on the Wright-Fisher process. Then, we explore the process of trust evolution for the two-strategy and the four- strategy models, and the influence of the incentive mechanism on the evolutionary stability conditions. Finally, we construct the global profit function of the VCSN participants, and adopt simulation experiments to verify the two-strategy and the four-strategy models.The VCSN has a huge space to expand. Our research on the trust evolution embedded in the VCSN will contribute to the VCSN's positive development. And, our research will provide significant references to the cooperation and division among VC institutions in the process of syndication investment.