The Non-cooperative Game Between Information Suppliers And Information Demanders

It is normal to see that while sellers are busy putting up various advertisements to promote their products, consumers are comparing prices between them before making choices; in competition, competitors release false information to confuse each other, while at the same time, they collect every bit of information of each other by all means; in stock market, rumors spread everywhere, but shareholders try their best to collect the so-called "inside information". All those mentioned above are caused by asymmetric information.Information has been defined in different ways based on its complexity, the underdeveloped status of information science and different research purposes. But basically, information is generated by knowledge disparity in market anticipation or in the economic environment which involves different participants. It is not a concept about material, energy or spirit, but about increment: information presents as a kind of knowledge disparity during transmission. In this way, participants possessing information may take advantage of knowledge to make profits. The identification of personal information and incompleteness of information leads to the being of asymmetric information. It allows information suppliers to take advantage of their information to make profits while the demanders are spending efforts into collecting the information they need.Firstly, this paper will give a brief introduction of the general idea of this article, the methods involved and the basic theories. Secondly it will elaborate all the points;Based on the research of information supply and demand in the incomplete market, this paper analyzes that the demand for information is unlimited because information is valuable; in the perspective of information supply, it is found that due to the perpetrator's limited information accessibility, processing capability and understanding as well as the viscous process during the information transmission, suppliers have the motivation to use their information priority to make extra profits, resulting in an inadequate supply of information in the market.Then through analyzing the effective ways in decision-making adopted by information suppliers and demanders, the paper shows that the main choice of the suppliers to make profits is to release false information to confuse the demanders, and demanders have an optional choice: to collect information from outside or to improve their information accessibility, processing capability and understanding.In the end, this paper sets up a model to analyze the ways in which suppliers having priority of valuable information and demanders make decisions.