Game Model And Decision Of Tender Offer Under The Non-Expected Utility Game Theory

With the extensive use of bidding at home and abroad projects, lots of scholars begin to study tender offer,in particular, the application of bidding with game theory is more and more widely. However, because the game theory under expected utility exists a few of limits ,such as the assumptions of rational people and complete information,so the application of tender offer with the traditional expected utility game theory faces a number of constraints, for example, policy-makers have limited rationality and bidders have risk preference, etc, which is not conform to the reality. Therefore, if we study the tender offer game model considering the bidders emotions, risk preferences and other factors ,it will be more close to the actual bidding behaviors, which has important theoretical significance and practical significance.Because of such considerations, this article sorts out the relevant literatures, on the basis of RDEU non-expected utility theory, makes tender offer game model as study starting point, uses the emotion function as a means of structure, establishes the non-expected utility tender offer game model which based on bidder's emotion, and at last studies the impact of bidding emotion to the value of the decision-making by numerical simulation analysis.At first ,the paper conduct a study on the research of tender offer at home and abroad and latest developments, analysis the application of game theory in the bidding, including in-depth investigation of genesis and development of non-expected utility theory. Secondly, conduct a analysis of the risk decision-making and psychological emotion of bidders, which arrive at a conclusion that the risk appetite and emotional factors of bidders have a significant impact on the tender offer decision-making process. Therefore, propose the emotional function at the tender offer decision-making process, with a study of the emotional function. Then, through the emotion-induced experimental approach produce the emotion which is required by bidders, and take the experimental results through the preliminary experiment and the final two stages of experimental studies. Verify the emotion will affect the choice of the decision-making of bidders. And on this basis, draw out the emotional function curve of bidders, Verify the function characteristics of emotional function, proof the availability of emotional function in the tender offer decision-making. The biggest innovation of this paper is on the basis of RDEU expected utility tender offer model research, introducing the emotional function, establish a new NEU tender offer game model based on the emotion of bidders,which to make more prominent psychological impact on decision-making. So the results are more in line with the actual situation of the tender offer. At last, studying the influence of optimal equilibrium value under emotional factor by numerical simulation analysis, then, with in-depth analysis of optimal equilibrium value under the action of different emotion, and propose the optimal bidding strategy correspond to bidders.