The complex evolution of information quality improvement in competitive market

¹ Management School, Tianjin Normal University, Tianjin 300387, P.R. China
² College of Management and Economics, Tianjin University, Tianjin 300072, P.R. China

^* Corresponding author: scarlett_fn@126.com

Received: 9 May 2022
Accepted: 3 February 2023

Abstract

Information is important market resource. High-quality information is beneficial to increase enterprise’s reputation and reduce consumer’s verification cost. This paper constructs a two-layer dynamic model, in which enterprises simultaneously conduct price and information game. The goal of profit maximization integrates two types of games into one system. The complex evolution of the two-layer system are studied by equilibrium analysis, stability analysis, bifurcation diagram, entropy and Lyapunov exponent. It is found that improving the information quality through regulations will increase involution and reduce stability of the market. Then, the block chain technology is introduced into the model for improving information quality of the market. It is found that increasing enterprises’ willingness to adopt block chain can improve the information quality quickly and effectively, and that is verified by entropy value. Therefore, the application and promotion of new technologies are more effective than exogenous regulations for improving information quality in market.