Evolutionary game analysis on hidden irregularity of processing enterprises in dairy supply chain

Frequent dairy products quality safe accidents make the government and consumers concern more about hidden irregularities in dairy supply chain. The hidden irregularities include adulteration of dairy farmers and milk stations, producing fake of processing enterprises and selling fake of sales networks. In this paper, dairy processing enterprises as the research object, it is realistic significance to analyze hidden irregularity of processing enterprises by making use of evolutionary game analysis method because of enterprise's bounded rationality. The purpose of this paper is to analyze the long-term evolutionary trend of hidden irregularity of processing enterprises by applying replication dynamics mechanism of evolutionary game theory on the condition of bounded rationality. In this paper, on the basic of evolutionary game theory and method, we create the evolutionary game of hidden irregularity of processing enterprises, and then analyze dynamical evolutionary process. The analysis results indicate that the impact factors of hidden irregularity of processing enterprises are the marginal revenue of inferior dairy products, the penalty amount of inferior dairy products and the probability of finding inferior dairy products. Only government departments increase the supervision intensity and strength against inferior dairy products, it will improve dairy products quality and to promote the healthy development of dairy industry.