System Dynamics Analysis of Operational Game Evolution on Supply Chain of Embedded Community Service for the Elderly

Purpose/Significance With the increasingly serious situation of aging in our country, it has become extremely important to provide appropriate elderly care services to solve the problem of elderly care. Design/Methodology In view of the operation dilemma of embedded community for the elderly, the dynamic game process among the government, elderly communities and service providers is analyzed by using evolutionary game theory, the evolutionary game models of the three under different strategies are constructed, and the dynamic game of the three-party strategy selection is simulated and analyzed based on system dynamics. Conclusions/Findings The result will eventually reach an equilibrium state where all parties choose “the government adopts an incentive mechanism, the elderly community purchases high-quality products, and service providers do not cheat”. Government behavior plays an important role in the elderly care mechanism. The government directly influences the pension community and service provider’s strategic choice, and its reasonable supervision mechanism and measures can promote the sustainable and healthy development of community pension service supply chain. All parties are highly sensitive to relevant external variables, and the final strategy is jointly affected by multiple variables. Therefore, the government, elderly communities and service providers should make joint efforts to solve the problem of elderly services in society, so as to increase the happiness of the elderly.