The Application of Game Theory and Market Mechanism Design in the Digital Economy: Algorithms and Models for Optimizing Corporate Innovation Management

In the rapidly evolving landscape of the digital economy, enterprises face unprecedented challenges and opportunities in managing innovation effectively.This study investigates how the integration of game theory and market mechanism design can optimize corporate innovation management.By utilizing game theory models, such as noncooperative and cooperative games, the study analyzes strategic interactions among competing enterprises and identifies optimal resource allocation and decision-making processes.Additionally, market mechanism design is employed to create effective incentive structures and allocation mechanisms that promote fair competition and foster innovation efficiency.The research also incorporates advanced algorithms and simulation techniques to validate the practical applicability of the proposed models, enabling enterprises to adapt to dynamic market conditions.The findings suggest that a combined approach of game theory and market mechanism design provides valuable theoretical and practical insights for optimizing innovation management strategies in the digital economy.This study offers a comprehensive framework that enterprises can use to enhance competitive advantage and ensure sustainable growth.