Game Analysis of Strategic Partner Selection of Chinese and Foreign Technology Alliance

Abstract

This paper makes a discussion on the strategic partnership selection problem of technology alliance using the methods of game theory. We found the complete information dynamic game through backward induction which shows that when a companies have set up a strategic alliance with foreign manufacturers, it will select the interfere strategy to prevent an alliance between the other Chinese companies and transnational corporation, therefore, the optimal strategy of the latter is to maintain the status quo, and give up the motives of the strategic alliances.