Title: A game theoretical analysis of the 'going global' strategy of Chinese high-speed railway

Authors: Zhu Kefei

Addresses: Graduate School of China Academy of Railway Sciences, Building No. 12, Daliushu Road No. 2, Haidian District, Beijing, China

Abstract: In this paper, we studied the 'going global' strategy of high-speed railway industry in China. We proposed two game models to analyse the situation faced by the high-speed railway industry in China. We first considered the 'country selection' problem (CS problem) to shed light on the situation when we try to find a right partner to fulfil our 'going global' strategy. Our results showed the conditions that guarantee the going global cooperation becomes a dominant strategy Nash equilibrium. Then, we considered the 'product or technology' problem (POT problem) to discuss the 'going global' mode, i.e., what we should export to the other country. The results showed that even technology export may generate more payoffs to China the more likely cooperation mode will be the product export. Based on the results of the paper, some practical suggestions have been made to the 'going global' strategy. As far as we know, this paper is the first paper which studies the 'going global' strategy of Chinese high-speed railway industry by game theory.

Keywords: high-speed railway; game theory; Nash equilibrium; 'going global' strategy.

DOI: 10.1504/IJSTM.2019.100057

International Journal of Services Technology and Management, 2019 Vol.25 No.3/4, pp.371 - 383

Received: 12 May 2017
Accepted: 23 Jul 2017

Published online: 30 May 2019 *

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