Game Theory In The Real Estate Market

With the successful application for Olympic Games, the entry into WTO, and China continues to practice the positive financial policy and steady currency policy. Under this kind of situation, "cake" of Chinese real estate market will not only be divided by the domestic real estate companies, but the companies from Taiwan , Hong Kong and other foreign countries will also enter the drastic competition and break the original competition structure. The steps of the "Kingdoms' War" for Chinese real estate industry are approaching.Chinese real estate industry is a jumped-up industry, developing to now is not more than 20 years. Therefore a lot of problems still need to be solved. There are a lot of discussions concerning about the real estate market, but most of them just describe the phenomenon, not as comprehensive as need. On the one hand, every game sides in the market is rational individual, they are clever enough to adjust their strategy profile when they forecast opponents' strategy selection. More important, the games among them may well are repeated games. On the other hand, theses discussion are only aiming at a certain aspect of the problem, so it's not comprehensive and systemic enough. Therefore the solutions aiming at the problem are very hard to achieve the anticipate effect, maybe just the opposite to what one wishes.The real estate market is a extraordinary complicated system. After careful investigation, game opponents relate to real estate company consists of other real estate companies > financial institutions , contractors, broker companies , consumers.From the angle of game theory and information economics, this article intend to discuss the game focuses between the real estate company and its game opponents, and give out advantages and inferior position of every sides. Then modeling according to physical circumstance. Finally bring up the solution after linking the result of mold analysis and the fact of the real estate industry in our country.I hope, through this textual analysis, every domestic real estate company can be calmness in the future's competition, and cope with them easily.