A Review On The Talent Policy Of China's Local Governments: A Game Theory Viewpoint

This paper is made up of three parts. The first part gave a description on how the policies are made, which will based on a collection of policies implemented in many local governments and try to find the underlying logic behind those polices.Chinese local governments have great influence on local development. As one way to development economy, policies made to attract talents are widely used to boost local economy. This paper will made analysis on the local governments behavior from the perspective of game theory and gave a picture on how local governments made their talent policies in a complex game scenario.The second part is the main part of the paper, and it will explore how the local Chinese governments interact with each other as well as market forces. A matrix will be used to examine the four possible outcomes of the game between policies and market forces. Several non-cooperative game models will be set up to analyze the game between local governments. And the part will end with a cooperative game model to see whether it is possible for local governments to cooperate with each other and its prerequisites.The last part will explore how local governments could adjust itself and change there talent polices from the perspective of role adaptation and path dependency with a focus on the pressure of the adaptation. The analysis in this part will show that the talent policy will not have much impact without any improvement of the real environment when they lived. It is hoped that this part will make some contributions for the local governments in choosing their policies of attracting talents.