The Non-rational Behavior Research Of Financial Participant In Transition Period In China

The development of financial market, which is an "emerging + restructuring " in China, has reflected the "gradual reform of the finance" characteristic in the transition period. The financial market performs with diversification and market. Under the transition conditions, due to system changes, information asymmetry and cognitive errors, the financial market participants in China displays bounded rationality character. Individual and collective conflicts with interest, dilemma and bounded rationality is the main non-rational behavior to the root causes. We can observe huge bad assets in the banking system, the excessive speculation in stock market, the various chaos and disorder and so on. In such cases, the article using game theory, analyzes the formation mechanism of the non-rational behavior. And then get three recommendations: 1.The financial market system with incentive should be strengthened to reduce the uncertainty; 2. The transparency of the financial market should be strengthened to reduce the asymmetric information. 3. The participants in financial market should improve their profiting ability and competing ability to reduce the cognitive bias.