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Academic Journal of Business & Management, 2022, 4(13); doi: 10.25236/AJBM.2022.041305.

Research on Risk Management of Digital Transformation Based on Stochastic Evolutionary Game

Author(s)

Yajie Liu

Corresponding Author:
Yajie Liu
Affiliation(s)

School of Management, Shanghai University, Shanghai, China

Abstract

This paper studies the risk cooperation and management problem in the process of digital transformation of Internet enterprises to help small and medium-sized enterprises. First of all, build the payment benefit matrix of both Internet enterprises and small and medium-sized enterprises. Secondly, the stochastic evolution game model between Internet enterprises and small and medium-sized enterprises is constructed based on the stochastic evolution game theory. Finally, we solve the exponential stability condition based on the determination theorem of stochastic differential equations. The research shows that (i) When the proportion of SMEs (small and medium-sized enterprises) choose not to conduct cooperative management is below a certain threshold, the Internet platform will choose the cooperative management strategy. (ii) When the proportion of the Internet enterprises choose not to cooperative management is below a certain threshold, SMEs will choose cooperative management strategy.

Keywords

Stochastic differential game, Payment benefit matrix, Internet enterprise, SMEs

Cite This Paper

Yajie Liu. Research on Risk Management of Digital Transformation Based on Stochastic Evolutionary Game. Academic Journal of Business & Management (2022) Vol. 4, Issue 13: 32-37. https://doi.org/10.25236/AJBM.2022.041305.

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