A Stackelberg Game: Exploration and Development of Entrepreneurial Resources

Abstract

In this paper, a mathematical model of entrepreneurial resource development was established. Entrepreneurs are mainly faced with competition from other companies in the same industry and mature large-sized developing enterprises. These players not only possess more initial resources, but also are more capable at occupying resources. Then the equilibrium solution to zero-sum differential games of entrepreneurial resources was investigated, and the optimal strategy and its relationship with the economic environment were analyzed. The cons and pros of the equilibrium solutions under different scenarios were compared by considering small-sized enterprises and mature developing large-sized enterprises as the leader or the follower of Stackelberg games.