Abstract:

In the flourishing digital economy， the imperative to facilitate an effective collaboration between local governments and traditional businesses in the context of consumer participation forms the core of this study. It stems from the need to understand and optimize the strategic interplay that drives digital transformation in traditional enterprises， which has become a pivotal concern in the realm of digital economy studies. The problem is articulated by questioning how consumer involvement can enhance government and business collaboration for digital transformation. The focus is on identifying and implementing strategies that allow for efficient integration of consumer feedback and demands into the digital transformation initiatives of traditional businesses. Employing differential game theory， the methodology adopted in this study involves constructing dynamic models to analyze the strategic interactions among local governments， businesses， and consumers. The models incorporate various strategic frameworks including non-cooperative， Stackelberg， and cooperative games， which help in understanding the impacts of different strategic interactions on the digital transformation process. The approach to resolving these issues is through a rigorous analysis of game-theoretical models， which are used to predict and analyze the behavior of stakeholders under different strategic setups. By simulating these interactions， it aims to derive optimal strategies that promote sustainable digital transformation practices while maximizing the collective benefits of all parties involved in this study. The main findings of this research highlight the nuanced dynamics of the strategic interactions. For instance， it is shown that non-cooperative strategies， though primarily focused on individual gains， can inadvertently result in benefits to the overall ecosystem—thereby providing a new perspective on digital transformation. On the other hand， cooperative strategies are found to significantly enhance the ecosystem's integration and optimization， which are crucial for the robust digital transformation of businesses. Furthermore， it contributes to existing literature by offering a detailed theoretical framework that elucidates the role of consumer involvement in digital transformation strategies. It also provides strategic guidance for policymakers and businesses on implementing effective digital transformation strategies that incorporate consumer feedback and demands. It not only aids in understanding the strategic dynamics between governments， businesses， and consumers but also serves as a blueprint for developing policies that foster an environment conducive to digital innovation.

Key words: digital transformation, digital economy, government subsidies, cooperative strategies, differential games