Theory And Experiment Of Dynamic Structure In Four-strategy Game

Price adjustment is a common strategy used by modern enterprises in commercial competition.Price competition among enterprises will lead to constant fluctuations in market prices.This kind of fluctuation is not random,but has the characteristics of circular motion.This is Edgeworth’s price cycle in economic theory,and it is also a high-dimensional game dynamics problem in game theory.In the past 10 years,important progress has been made in theoretical and experimental research on this issue.However,the theoretical inferences and experimental measurements so far have not got rid of the constraints of two-dimensional space.This paper uses the classic four-strategy(price war)game to study the dynamic structure of the hyperplane cycle.Main content and methods: With the help of(1)five game dynamic equations,(2)computer simulation method based on multi-intelligent agents and(3)laboratory game experiment,through typical four strategies(super two-dimensional plane cyclic configuration)controllable parameter game,and at the same time,using the direction of the axis of rotation and the value of the eigencycle as observations,the dynamic structure of the game(including observable quantities)changes with parameters and the consistency between theory and experiment are studied.Main results:(1)Consistent with dynamic theory and simulation calculation expectations,a complete ultra-two-dimensional planar Edgeworth price cycle configuration was found in the four-strategy price war laboratory game experiment.At the same time,it is found that there is a structural difference between the experimental strategy distribution and the deviation of theoretical derivation.(2)In the market of the experimental environment,when the proportion of price-seeking consumers is high,the more powerful the manufacturer’s motivation to cut prices from the high-price area,the faster it will be,and the speed of returning from the low-price area to the high-price area is relatively slow.When the proportion of price-seeking consumers is low,manufacturers are more reluctant to cut prices in high-price areas,and they are more willing to shift from low-price areas to high-price areas.Main contributions:(1)Among the peers of international experimental game theory,first confirmed that the hyperplane game dynamics process cycle is real.(2)It is confirmed that the motion characteristics of the cycle are truly controllable,and the control method can be based on the game dynamics equation provided in the evolutionary game theory knowledge system.(3)Different from the stochastic nature of the Nash equilibrium,the core concept of static game theory,the experimental results of this article believe that the strategy distribution depends more on the structure of the eigenvector components.