In this paper, based on Higgs which is our
Hologram engine under the bigdata, we establish the Dynamics of Stochastic
Incentive Effect for “U” Shape Theory owned by SMEs (Small and medium-sized
enterprises) by applying the stochastic resonance through the establishing
nonlinear SDE to describe the dynamic behaviors of bilateral partnership
system. The aim of our talk is to discuss a new
quantitative method and the associated prototype system to address the issue
how the venture capital incents partners especially associated with
partnership success, what roles the internal/external risks play
respectively, and by how to avoid risk resonance and create portfolio
strategies of introducing venture capital and optimizing the portfolio risk
in the practice. In another way, if taking the enterprise as
the target (or say the partners), we like to describe the mechanics for
venture capital finance in an environment by combining investment associated
external and internal risk with consideration of capital-product switching
mechanics - the “back and forth conversion of two states” (which are due to
partnerships between multiple sides that share goals and strive for mutual
benefit are ubiquitous both between and within the enterprises, and
competition and cooperation are the fundamental characterize in partnership
systems). In order to do so, we use
“asymmetric bistable Cobb-Douglas utility” as the tool to describe the two
states ( actually we can also use some other kinds of utility function, too),
then we build the new model called “nonlinear stochastic differential equation
to describe the dynamical behaviors of bilateral partnership system in the
presence of periodic capital-product switches and stochastic fluctuations”
(called “ an over-damped non- linear Langevin equation”) to study when the
“back and forth conversion of two state” could reach the “best” in terms of
Stochastic Resonance (SR) by introducing three new concepts below for the
measurements of the system (for enterprise): 1) “output signal-to-noise ratio (SNR)”, 2) “stationary unit risk-return (URR)”, and 3) “incentive risk”. These three new concepts can be classified
as two categories: systematic risk, and bilateral risk. In this way, we are able to establish the
general framework for the mechanics of enterprises, in particular, to successfully explain the so-called “U”
phenomenon for SMEs, the key business
behavior of SMEs (from the practice in China) which mean that more external
cooperators many not be better, this is against the intuition and traditional
understanding (this might be one of biggest discovery for the SME’s study
under the framework of Fintech by using bigdata method), which is also called
“U” Shape phenomenon for SMEs first time in this area. |