Evolutionary game study on information nodes setting in supply chain tracing based on compensation mechanism

School of Economics and Management, Southeast University, No. 2 Sipailou, Nanjing 210096, P.R. China

^* Corresponding author: ldzhao@seu.edu.cn

Received: 6 September 2021
Accepted: 23 August 2022

Abstract

Consumption compensation is the driving force for motivating each supply chain link to set up information nodes, which is of great significance for promoting informatization, modernization, transformation, and upgrading of the supply chain system. This study simulates the evolution process of strategic selection for each supply chain link to set information nodes independently or collectively under the unconstrained government rewards conditions and punishments. The main conclusions are as follows: (1) When each link in the supply chain provides source tracing information independently, the vendor chooses to set up information nodes for the links with large information cost compensation coefficients. (2) When the vendor provides source tracing information cooperatively if the collaborative benefit is less than the cooperation cost, the information node will be set to the link with the large compensation coefficient. If not, information nodes will be set in each link. (3) Under the government incentive mechanism, enterprises are willing to cooperate. The punishment mechanism helps avoid situations where neither side sets up information nodes. The compensation coefficient is a prerequisite for mechanisms to work.