Game Analysis Of The Rent-seeking On The Real Estate Market

Since the reform and opening-up policy, China's real estate market develops rapidly and becomes the driving force of economic growth. The real estate industry is one of China's pillar industries and always stimulates economic growth。The growth of real estate investment is more than 20% and above the rate of economic growth. Meanwhile, the real estate market also produces a lot of negative effects. There are some problems, such as excessive speculative demand,high vacancy rate,high housing price-income ratio and a lot of rent-seeking phenomenon on the real estate market. These problems directly or indirectly affect steady increase of prices and healthy development of the real estate industry.There are large amounts of rent-seeking behavior on the real estate market. In China, because of the use right and ownership of land separates, state control the land resources. Government obtains financial income through transferring and selling the land resources. The scarcity of land resources becomes real estate developers'rent-seeking goal because local government has land configuration rights. There are many darkroom operations in the auctioned-sold manner and then appear a lot of rent-seeking behavior.The result of rent-seeking behaviors on the real estate market is tremendous waste of social resources. Rent-seeking activities by three layers have three levels: The first level, to obtain government'special protection, real estate developers lobby to the relevant departments using resources; The second level, in order to cope with the estate enterprises'rent-seeking behaviors, the government department staffs must pay the corresponding time and energy; The third level, When the rent-seeking behavior completed, there are full of rent seekers on the real estate market. When rent-seeking behavior realized, the related producers and consumers will pay the price due to the government's intervention. The price is higher than profit margins of rent seekers and lead to social welfare's net loss. The various rent-seeking activities on the real estate market are competitive activities. Each stakeholder make a decision with fully consider each other's reaction and make the best choice according to each other's reaction. Using the game theory and based on the assumption of the rational agent, this paper discusses the relationship between different stakeholders and builds bi-game and tri-game model. Using game research method, we can find out the behavior relationship of the economic subject on the current China's real estate market and give some suggestions for government's system construction.This paper is divided into 5 parts:First part, introduction. This part introduces the research background and significance and research results of scholars at home and abroad on the rent-seeking behavior.Second part, theoretical basis. This part mainly introduces rent-seeking theories and game theory which will be used in the paper and gives some basic principles.The third part, the rent-seeking on the real estate market. This part expounds the development present situation of the real estate market and analysis the rent-seeking behavior of stakeholders on the real estate market from the causes,the specific performance and the consequences.The fourth part, game analysis on the real estate market. This part analysis the rent-seeking behavior of prime participants on the real estate market and results of the game model.The fifth part, conclusion. This part summarizes the third and the fourth part and gives some advices.