Exploring The Competition Strategy between Telecom Operators and OTT Service Providers in The Evolutionary Game Theory

This study establishment evolutionary game model under a combination of related strategic factors. It obtains local equilibrium points via replicated dynamic equation and uses the Jacobian Matrix to analyze the stability of equilibrium. The results show that if the extraneous income is less than the cooperation cost, both sides may adopt non-cooperative strategies. Additionally, if the network externality benefit minus cooperation cost is greater than the spill-over effect, they will adopt cooperation strategies. The probability of cooperation will gradually decrease with increase in cooperation cost; the greater the network externality, the more the probability of cooperation. As the cooperatorsâ€™ income from individual research and development rise, so does the probability of cooperation. Keywords - Evolutionary Game Theory; Evolutionarily Stable Strategy; OTT Service; Telecom Operator