Game Theory Approach On The Development Of Lianyang Community

Based on the abstraction of various development subjects and their behavioral model from the case of Lianyang, this study adopts an approach of game theory to the analysis of the interrelationship between various subjects and the theoretical outcomes ensued which are further compared and contrast by the actual results of the development process. Several conclusions are attained: the cooperation between the government and local economic groups in the term of land acquisition can change the zero-sum game to win-win game; the auction price of land from the government requires the leverage of property market, otherwise the demand gap of land can never be covered; in most circumstances, development companies in the secondary market have to cooperate to achieve optimized benefits for all; though there tends to be distrust and tyring-mistake in the first stage of cooperative game, with an effective and an optimal-benefit-oriented set of guiding rules, all the players converge to the state of obeying the cooperative rules. At the end, this study proposes that proper forms of urban planning should be resorted to according to correspondent games in development process.