Game Research On The Secondary Real Estate Market

Since the reform and opening up, especially from the 1990s, the real estate industry in China has fast developed and become one of the important branches in the national economy. At the same time, many problems emerged in the course of its development, and the reason of that is not only from the macro control but also from the investors and developers. By taking asymmetric information and sincerity as a clue, this paper analyzes the complex relationship among the participants by using game theory, information economics. This paper studies the activities of developing real estate from micro view. In contrast to traditional method of studying from macroeconomic view, this paper exacts different agents from the market of real estate so that influences on the whole market of real estate caused by their interaction can be assessed. The four main reasonable agents have been taken into shape on the market of real estate after over ten years developments. Under certain regulations to maximize their own interests, they take different strategies and cause complicated relations between them .In studying real estate market the studies of individual behavior are ignored frequently, but the analysis in this paper is based on the studies of individual behavior. Their strategies are studied between two agents under different situation.The paper is divided into four parts: The first part explains the basic concepts of the real estate market, research topic and its significance and the literature review .The second part is about asymmetric performance in the real estate market. The third part expounds the study on information asymmetry in the real estate by analyzing the action of the consumer and the developer through the game theory. Also this paper analyzes the action of the consumers and the action of the developers in real estate market. It also analyzes the participant's process of maximizing their own self-interest to point out whether there is a balanced possession and Pareto Improvement Strategy .The fourth part concludes the study and gives the suggestion to solve the information asymmetry on real estate market.