Decision Analysis of Game Behavior for the Fresh Food Industry: Potential Entrants, Incumbents and Consumers

Abstract

This paper conducts a decision analysis of game behavior for the fresh food industry, including potential entrants, incumbents and consumers. Potential entrants are the key research object in the analysis of game behavior. The Stackelberg model, considering the uncertainty of market, consumer preference, freshness and greenness of fresh products, is used to analyze the best entry strategies for potential entrants. This paper then establishes an evolutionary game model to further analyze the most optimal entry mode of potential entrants. The combination of two game models can help potential entrants determine the optimal price, output, product freshness, greenness and sales channels.