The Research on Formation Process of Business Incubation Network Based on Games Mechanism

This paper theorizes a stabile and compressive mutual mode between the membership of business incubation network, and successfully simulates the incubation process based on Game theory. In the model, we analyzed the business incubation network not only specifies the playing partners but, crucially, also determines how relevant strategic information diffuses or new cooperation opportunities are found over time and incubatees interact according to a collection of infinitely repeated Prisoner's Dilemmas played on the current business incubation network under the condition. The results of research indicated that the underlying payoffs of incubation network units randomly change, display some volatility, which leads units to react by creating new links and more effective trade mode in the business incubation network.