TY - JOUR
T1 - Conflicts between business and government in bike sharing system
AU - Yang, Hong
AU - Hu, Yimei
AU - Qiao, Han
AU - Wang, Shouyang
AU - Jiang, Feng
PY - 2020
Y1 - 2020
N2 - Purpose: The purpose of this paper is to elaborate on the interactive conflicts between business and governmental authorities in the regulatory process of an emerging business model: sharing economy. Focusing on bike sharing system, the study also investigates the conflict-handling strategy of bike sharing companies and government regulation. Design/methodology/approach: An evolutionary game model is introduced to illustrate the interactive conflict between bike sharing companies and government regulation, combined with system dynamics (SD) to simulate the evolutionary conflict-handling strategies between the two players. Findings: The dynamic strategies of the two players are observed, and under five conditions the conflict outcomes are evolutionary stable states. Simulations show that each party sacrifices part of its interest and adjust its strategy according to that of the other, indicating the conflict-handling strategy as a compromising mode. Furthermore, the strategies of bike sharing companies are sensitive to additional operation and maintenance costs for producing low-quality bicycles and costs of positive regulation, which provides theoretical guidance for regulatory authorities. Originality/value: The station-less bike sharing come up in China recently, and it is an important research field of entrepreneurship. Owing to the uniqueness and novelty of the phenomenon, conflicts and challenges exist during the regulation process. Thus, the study practically contributes to the conflict-handling strategies of businesses and government under the context of sharing economy. Methodologically, as a novel issue with less available data to carry out empirical research, this study combines evolutionary game theory with SD to shed light on the complex interactions between businesses and government. The research method can be applied to other entrepreneurial studies.
AB - Purpose: The purpose of this paper is to elaborate on the interactive conflicts between business and governmental authorities in the regulatory process of an emerging business model: sharing economy. Focusing on bike sharing system, the study also investigates the conflict-handling strategy of bike sharing companies and government regulation. Design/methodology/approach: An evolutionary game model is introduced to illustrate the interactive conflict between bike sharing companies and government regulation, combined with system dynamics (SD) to simulate the evolutionary conflict-handling strategies between the two players. Findings: The dynamic strategies of the two players are observed, and under five conditions the conflict outcomes are evolutionary stable states. Simulations show that each party sacrifices part of its interest and adjust its strategy according to that of the other, indicating the conflict-handling strategy as a compromising mode. Furthermore, the strategies of bike sharing companies are sensitive to additional operation and maintenance costs for producing low-quality bicycles and costs of positive regulation, which provides theoretical guidance for regulatory authorities. Originality/value: The station-less bike sharing come up in China recently, and it is an important research field of entrepreneurship. Owing to the uniqueness and novelty of the phenomenon, conflicts and challenges exist during the regulation process. Thus, the study practically contributes to the conflict-handling strategies of businesses and government under the context of sharing economy. Methodologically, as a novel issue with less available data to carry out empirical research, this study combines evolutionary game theory with SD to shed light on the complex interactions between businesses and government. The research method can be applied to other entrepreneurial studies.
KW - Bike sharing
KW - Conflict management
KW - Government Regulation
KW - evolutionary game theory
KW - System Dynamics
KW - System dynamics
KW - Government regulation
KW - Evolutionary game model
UR - http://www.scopus.com/inward/record.url?scp=85083221327&partnerID=8YFLogxK
U2 - 10.1108/IJCMA-10-2019-0191
DO - 10.1108/IJCMA-10-2019-0191
M3 - Journal article
SN - 1044-4068
VL - 31
SP - 463
EP - 487
JO - International Journal of Conflict Management
JF - International Journal of Conflict Management
IS - 3
ER -