Abstract: Based on the game theory and diffusion theory, a multi-agent system is implemented to study the collaboration mechanism in demand driven mobile value chain. The value chain in mobile commerce is used as an example to obtain market demand data. Firstly, a traditional bass diffusion model based on system dynamics theory is expanded to depict the mobile product or service diffusion, which taking the repeat purchase into consideration. Secondly, a cooperative game model driven by real-time demand is built to examine the partner selection between mobile operators and service providers. Thirdly, an evolution game model is explored to investigate the collaboration in dynamic alliance of service providers, by which the market demand is satisfied. Then the integrated simulation system is rerun for several times, and analyzed by the life cycle theory. Simulation analytical and numerical results lend insight into how the industry profit is impacted by the market factors and mobile value chain factors, which contribute some decision support for mobile value chain.

Key words: collaboration, game theory, diffusion theory, life cycle, multi-agent