Optimal strategies for innovation and market allocation in joint production

Capacity sharing is an important way for relevant enterprises to save production materials. This paper constructs a capacity sharing decision-making model that considers market competition intensity, and introduces the independent market size of participating entities into the model design. This paper explores the impact mechanism of factors such as market competition intensity, independent market size of participating entities, and innovation cost coefficient on system decision-making. Research has found that the increase in independent market size has a consistent impact on the innovation and pricing decisions of enterprises sharing production capacity. Although the increase in independent market size enhances the sharing ability of production line innovation costs, it may not necessarily alleviate the problem of excessive competition among participating entities in overlapping markets. It is also necessary to specifically consider the impact of market competition intensity. The specific research conclusions provide decision-making basis for enterprises to participate in the process of capacity sharing, and also provide theoretical basis for relevant government departments to intervene in the process of capacity sharing.