The Influence of Government on Automobile Enterprise`s Production Methods: An Evolutionary Game Based Study

With environmental protection and energy efficiency increasingly becoming the central issues of global concern, government policies have had a significant impact on the automotive industry, particularly on corporate production methods.This paper aims to analyse the interactions and strategic choices between governments and automotive production companies through the framework of game theory, as well as how these interactions drive the evolution of production methods in the automotive industry.The research first constructs a theoretical framework, considering government regulation, corporate costs, and reputation acquisition as the main variables.Then, using game models, it analyses the strategic behaviour of different entities under the guidance of government policies during industrial transformation.The findings reveal whether automotive enterprises will transition to new energy production methods under government policies that enforce rewards or penalties.In the process of numerical simulation, we present the results of changes in choices for both sides with the modification of some key parameters, providing references for further research.