Abstract
Government, who has a primary stake in social safety and welfare, undertakes the task of monitoring enterprises to make sure that they reserve and replace emergency supplies and equipment as required. Nevertheless, the reality is unsatisfactory, which is caused by the hidden information about the reserves' quality and performance. This paper considers a kind of emergency supplies and equipment that are needed to be replaced periodically to guarantee their usability and availability. A government-enterprise game model is established to analyze the enterprise's shirking behaviors and the government's monitoring strategies. The experience based equilibria are generated from a reinforcement learning algorithm. Results demonstrate the effectiveness of utilizing the experience-learning method to solve this kind of moral hazard problem. This study further puts forward managerial implications by analyzing enterprise's replacement strategies and government's monitoring patterns when the enterprise faces different levels of social losses.
| Translated title of the contribution | Game analysis of enterprises' replacement of emergency supplies and government's monitoring |
|---|---|
| Original language | Chinese (Simplified) |
| Pages (from-to) | 2611-2619 |
| Journal | Xitong Gongcheng Lilun yu Shijian/System Engineering Theory and Practice |
| Volume | 38 |
| Issue number | 10 |
| Online published | 9 Oct 2018 |
| DOIs | |
| Publication status | Published - Oct 2018 |
Research Keywords
- 应急物资
- 轮换更新
- 质量监管
- 博弈均衡
- 强化学习
- emergency supplies
- replacement
- quality monitoring
- game equilibria
- reinforcement learning