Exploring Tourism Recovery in the Post-COVID-19 Period: An Evolutionary Game Theory Approach
Abstract
:1. Introduction
- What changes have taken place in tourism enterprises, governments and tourists under the impact of the pandemic?
- Under the influence of different parameters, what is the possible behavioral evolution of these stakeholders?
- What should stakeholders do under the optimal evolutionary path (tourism recovery)?
2. Literature Review
2.1. Tourism Crises
2.2. Stakeholders and Tourism Recovery
2.3. The Application of Evolutionary Game Theory
3. Model Description
3.1. Background of the Model
3.2. The Evolution Model of Stakeholders in the Post-COVID-19 Period
3.2.1. Model Description between Governments and Tourism Enterprises
- (I)
- We denote x as the probability of governments selecting regulation strategy and as the probability of governments selecting a non-regulation strategy. In addition, y is the probability of tourism enterprises selecting innovative strategies for adapting to the pandemic, and is the probability of choosing to maintain the traditional development pattern before the pandemic.
- (II)
- When governments choose to implement the decision to support tourism enterprises, there will be a corresponding cost (). Tourism enterprises will be punished by governments () when their non-compliance behavior affects safe production and operation activities, whereas they will be rewarded for initiating reform and innovation (). When enterprises choose to reform and innovate tourism products and services, the corresponding cost is, and the operating income obtained is . The cost for tourism enterprises not changing their minds and choosing to maintain the traditional development trajectory before the pandemic is , and the operating income obtained by traditional methods is . When tourism enterprises choose traditional methods of development, social losses, such as pollution and safety accidents, will require governments to pay corresponding governance costs (). Table 1 explains the payoff values.
3.2.2. Model Description between Tourism Enterprises and Tourists
- (I)
- We denote y as the probability of tourism enterprises selecting innovative strategies for adapting to the pandemic, and () as the probability of choosing to maintain the traditional development pattern before the pandemic. The tourists’ strategic choice is to travel or not to travel, and the selection probabilities are given respectively by and .
- (II)
- When enterprises choose to reform and innovate tourism products and services, the corresponding cost is, and the operating income obtained is , and if the tourists support getting extra income of . The cost for tourism enterprises cannot change their minds and choose to maintain the traditional development trajectory before the pandemic is , and the operating income obtained by traditional methods is . As for tourists, the cost of the travel strategy is , the additional experience benefit obtained during the enterprise innovation is , and the experience benefit of the enterprise maintaining the traditional operating mode is . Table 2 explains the payoff values.
3.2.3. Model Description amongst Tourism Enterprises
- (I)
- The enterprise is the subject of limited rationality, and the strategic choice of the participants of the game (assuming tourism enterprise A and tourism enterprise B) can either be cooperation or non-cooperation. The probability of enterprise A choosing cooperative strategy is , and the probability of adopting non-cooperative strategy is , where . The probabilities of enterprise B choosing cooperation and non-cooperation strategies are and , respectively, where .
- (II)
- When both participants choose the non-cooperative strategy, their respective benefits are and . When both participants choose the cooperation strategy, the incremental benefit they can get is , and is the change in their respective returns when the two strategy choices are opposite. That is, the non-cooperative enterprise can obtain an incremental income of , whilst the enterprise that adopts the cooperation strategy produces a loss of, assuming that . Table 3 explains the payoff values.
4. Model Solutions
4.1. ESS Analysis amongst Stakeholders
4.2. Strategy Stability Analysis
5. Discussion
5.1. Discussion of Model Results
5.1.1. Model Result between Governments and Tourism Enterprises
5.1.2. Model Result between Tourism Enterprises and Tourists
5.1.3. Model Results amongst Tourism Enterprises
5.2. Theoretical Implications
5.3. Managerial Implications
6. Conclusions, Limitations and Directions for Future Research
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
References
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Game Agents and Their Strategies | Tourism Enterprises | ||
---|---|---|---|
Innovation | Traditional Development Pattern | ||
Governments | Regulation | ||
Non-regulation |
Game Agents and Their Strategies | Tourism Enterprise | ||
---|---|---|---|
Innovation | Traditional Development Pattern | ||
Tourists | Travel | ||
No travel |
Game Agents and Their Strategies | Tourism Enterprise B | ||
---|---|---|---|
Cooperation | Non-Cooperation | ||
Tourism Enterprise A | Cooperation | ||
Non-cooperation |
Equilibrium Point | Local Stability | Conditions | ||
---|---|---|---|---|
+ | - | ESS | ||
+ | - | ESS | ||
+ | - | ESS | ||
- | / | Saddle point | / | |
/ | 0 | / | / |
Equilibrium Point | Local Stability | Conditions | ||
---|---|---|---|---|
+ | - | ESS | ||
+ | - | ESS | ||
+ | - | ESS | ||
+ | - | ESS | ||
/ | / | Instability | / |
Equilibrium Point | Local Stability | ||
---|---|---|---|
+ | - | ESS | |
+ | + | Instability | |
+ | + | Instability | |
+ | - | ESS | |
- | 0 | Saddle point |
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Yan, H.; Wei, H.; Wei, M. Exploring Tourism Recovery in the Post-COVID-19 Period: An Evolutionary Game Theory Approach. Sustainability 2021, 13, 9162. https://doi.org/10.3390/su13169162
Yan H, Wei H, Wei M. Exploring Tourism Recovery in the Post-COVID-19 Period: An Evolutionary Game Theory Approach. Sustainability. 2021; 13(16):9162. https://doi.org/10.3390/su13169162
Chicago/Turabian StyleYan, Hui, Haixiang Wei, and Min Wei. 2021. "Exploring Tourism Recovery in the Post-COVID-19 Period: An Evolutionary Game Theory Approach" Sustainability 13, no. 16: 9162. https://doi.org/10.3390/su13169162
APA StyleYan, H., Wei, H., & Wei, M. (2021). Exploring Tourism Recovery in the Post-COVID-19 Period: An Evolutionary Game Theory Approach. Sustainability, 13(16), 9162. https://doi.org/10.3390/su13169162