Evolutionary game analysis of local government and small and medium-sized service enterprises in respponse to Covid-19 shock: Journal of Nanjing University of Information Science & Technology

ABSTRACT

Small and medium-sized service enterprises were particularly vulnerable during COVID-19. To help them survive the pandemic, local government introduced series of support scheme, such as the vouchers jointly granted by government and small and medium-sized service enterprises. This paper constructs a tripartite evolutionary game model involving local government, small and medium-sized service enterprises,and consumers, to study the influencing factors of paid subsidies, government credibility, and voucher deduction amount on the strategies of each stakeholder.The results show that the low subsidy and the paid characteristic of consumer vouchers have a great impact on the government credibility, which will prompt government to choose paid support for enterprises;the enterprises are inclined to choose positive self-help strategy due to higher paid subsidies and less deduction for consumption vouchers;that the vouchers hardly influence the actual consumption amount, and the more deductions of consumption vouchers by enterprises of positive self-help strategy, will motivate consumers to choose voucher consumption.Ít can be concluded that a differentiated support scheme combined with precise delivery of consumption vouchers can promote economic recovery.