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Economic Analysis Of The Reputation Mechanism Of - A Brief Analysis Of The Construction Of Social Credit System

Posted on:2004-06-25Degree:MasterType:Thesis
Country:ChinaCandidate:S W LiFull Text:PDF
GTID:2206360092485181Subject:National Economics
Abstract/Summary:PDF Full Text Request
Since the reforming and opening up to out-world, China is under a gradually developing way. Chinese market economy system's development is unequally developing and in a process of gradual perfection. As one important base of the market economy, the credit system development is obviously lagged. But as the core of the credit system, the credit mechanism still plays a very small and unimportant role in the economy. All kinds of opportunism behaviors, which don't keep promise and trample the credit take place in our social economic life now. The behaviors not only disturbs the market economy order seriously, increases the bargain cost, makes large quantity of resource wasted, but also affects the central government's macro-economical policies. So the credit mechanism becomes the "bottleneck" which hinders the economy of China further increasing. Even in the developed nations, the problem about credit also makes person worried. Recently the fraudulence case of Enron and World Corporation that took place in the United States, illustrated that the market economy is indeed based on the strong credit. Therefore, it is an important and realistic for us study the credit mechanism in detail. The modern economics gradually focuses on the analysis of human behaviors. So this thesis begins to analyzing the competitive and cooperation behaviors showing in pursuing the maximum material benefits by economic person. The development history of human society is a history of cooperation,and the cooperation is necessary to each stage of society. The good cooperative relation decides the economic behaviors of people. And the credit is the premise of a short-time or a long period cooperation. However, in the modern economy, most of the technique, service and the operating mode can be imitated. The competitiongradually focuses on the credit. The competition promotes the development of the technology, and cooperation defines the boundary of the competition. The contradiction between competition and cooperation sets up a kind of economic order. In order to keep the economic in normal state, the essential power of credit mechanism, as well as the laws, often plays an un-substituted role. The establishment of the credit is based on the "credibility", and it is the result of credible behavior and the premise of the reoccurrence of the people's business activity. The party of the credit relationship is the body of the credit mechanism. And all kinds of rights and obligations arising from the exchange activities constitute the object of the credit mechanism .We know the exchange and cooperation are based on both parties trust in each other, so trust constitutes the content of the credit mechanism. Viewed from the macroscopic, the credit mechanism is related to the economic level, the property relation, and the degree of opening outward in a nation or region. If the economic level is higher, the clearer the property relation is the more value will be to the credit. Vice versa, the more value to the credit, the more credit will facilitate the economic development. Investigated from micro-view, the credit mechanism is related to the fluxion and transparency of information and the credibility of punishment. In order to explain this point, the paper analyzes the principle of the credit mechanism performing in the "enforce-oneself" contract through making use of the simple knowledge about information economy and the game theory. In one-time static game, the cooperation succeed in both must keep their promise. To avoid "one keep promise but the other break the promise", it is required that giving punishments to the default and giving necessary compensates to the faith. But in the long-time dynamic game, the balanced term of a successful cooperation is that the winning of long period faith exceeds the income gained by the breach of faith through short-time behavior. Whether short-time orlong-time cooperation, it must depend on a series of terms, for example, the freedom in contract, the clear property, the transparen...
Keywords/Search Tags:credit, credit mechanism, contract, cooperation
PDF Full Text Request
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