Dynamic Game Research In Financial Innovation Process

As one of the main popular trends in the international financial market since the end of 1990's, financial innovation has attracted lots of people's attention. Most of theory researches of financial innovation are all talking about the reason for financial innovation and the financial innovation process model analysis according to static framework, but neglect the influence on the decision action by the financial innovation main body, and the operation efficiency and resources arrangement efficiency during financial innovation, which are effected by the dynamic situation where innovation main body is, the strategies and competition activities among innovation main bodies and the information externality. This paper makes effort, by using the game theory which has been widely accepted in the fields of economics, to clearly analyze the interaction relationship among those innovation main bodies during financial innovation, the perfect equilibrium and the factor effect affecting the financial innovation process.The paper is designed to five chapters: The first chapter puts forward the main problem and generally introduces the main content, method, purpose and structure of the research in this paper. The second chapter introduces the main content and models about game theory, and gives comment on the exact meaning about financial innovation, especially tells the present research about financial innovation theory and model in the world and the limitation, puts forward the dynamic character during financial innovation and the necessity for the dynamic analysis in the financial innovation process. The third chapter, at the micro level, by using both complete and perfect and complete but imperfect information dynamic game theory models, analyzes the competition equilibrium of financial innovation main bodies and factor effect which affects the game process. On the other hand, mainly from the intermediate level, by using dynamic cooperative game theory and incomplete information dynamic game theory models, analyzes the innovation competition and mutual relationship between market actors and innovation main bodies. The forth chapter, from the macro level, according to the character analysis for the principal— agent theory and the repeated dynamic game theory between governments and financial innovation associations, illustrates the perfect adjustment and supervising ways, and system choices for the government. The fifth chapter, from the micro, intermediate and macro levels, gives the summary and brings forward countermeasures, advices and enlightenments according to the each main body during the financial innovation process in our country.