An analysis of the textile and apparel industry in China based on the game thory

It is an opportunity and challenge to the textile and apparel industry of our country when post quota era is approaching. How to grasp the chance and meet the challenge is the key to promote the development of textile industry. From the perspective of game theory, this paper studies the problems in the textile and apparel industry of China, the most important one is the problem of low-price competition. The paper analyzes the best option of the enterprises and the factors affecting the cooperation between the firms when two firms have finite games. Given two firms having finite games, the essay analyzes the problems under the conditions of single pure strategy Nash equilibrium games and many pure strategy Nash equilibrium games. Some suggestions and measures are also presented.