Exhibition Design Companies Face "Prisoner'S Dilemma"

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Even so, many booth design companies still seem to be "happy" and repeat "useless work" again and again. Exhibitors "leisurely" enjoy the "free lunch" which has been very rare in the market economy.

Most of the exhibition design companies are small, scattered and chaotic, and often have 1 to 2 advertising designers. They can pull up the banner of a registered company and enter the low threshold, causing confusion.

At present, more than 60% of the exhibitions are decorated by themselves, which provides room for these enterprises to survive.

But as the number of participants increased, the situation worsened.

Some time ago, I participated in the industrial conference of booth design company.

When it comes to the current situation of vicious competition, the participants are all suffering but helpless.

Some people in the industry put forward a unified design fee of 300 yuan to exhibitors in order to deal with their random bidding behavior, thus giving a certain degree of compensation to the design company that failed to bid.

This is a response.

I deeply understand the hardships of these booth design companies, and the aggravation of competition has further diluted their profits. In most cases, the hard work of "useless work" has undoubtedly aggravated the operation of the company.

In this way, it seems to be the best choice for the booth design companies to win the benefits that are within the industry.

However, the author believes that the development of this industry is not yet mature. In the short term, the charging strategy for exhibitors can not be effectively implemented, and it can not effectively change the current situation faced by the booth design companies. This can be explained by the classic case of "prisoner's dilemma" in game theory.

The so-called "prisoner's dilemma" is actually a paradox between individual rationality and collective rationality.

The two suspects (A and B) were arrested after the crime and were interrogated.

If two people confess, they will be sentenced to eight years; if one confesses and the other denies, the confession will only serve one year's sentence, and the repudiation will suffer ten years' imprisonment; if two people deny, they may be sentenced to two years for lack of evidence.

In this case, every suspect has two choices: confession or denial.

For the two person, the best result is undoubtedly to be denied and only two years in prison. The results show that no matter how the other party chooses, the best strategy for either side can only be confession.

As a result, each person was sentenced to eight years' imprisonment.

The exhibition design company is also facing a kind of "

This is also confirmed by many cases in other industries, such as the color TV enterprise summit, auto price alliance, air conditioning industry agreement and so on.

But in the end, the so-called "alliance" or "gentlemen's agreement" can hardly resist the rational behavior of the interests of all parties in pursuit of maximizing their own interests.

To sum up, the booth design industry should be clear that the non cooperative equilibrium reached by the "prisoners in distress" is limited to limited cooperation (in most cases for once), because prisoners generally face only one chance of "gaming", so when they make the most rational choice for themselves, they will not consider the subsequent retaliation.

But if the game is repeated indefinitely, the situation will be different.

At this point, any short-term opportunistic behavior may be insignificant, and the participants tend to establish a reputation of being willing to cooperate with others, and also actively punish each other's opportunistic behavior.

The current situation is that many exhibition design companies still remain in the stage of plagiarism and lack of innovation.

Therefore, improving the gold content of design and no longer winning at a low price is the long-term way.