The Construction Of The Chinese Private Enterprises-government Positive Relationship From The Perspective Of Game Theory

The reform and opening up has accelerated the development of Chinese individualenterprises. It can also attribute to the establishment and fast development of socialistmarket economy. The establishment of socialist market economy didn’t and can not tearapart the relationship between the private enterprise and government. It only makestheir relationship more characteristically.Their relationship is a field that needs to deepening and expanding. The paperusing Game Theory systematically analyzes their relationship, discusses how privateenterprise building a relationship with government affect enterprise’s value, and how tobuild a win-win private enterprise-government relationship model.It illustrates the connection of enterprise-government relationship and enterprisevalue, and believes enterprise-government relationship will affect enterprise valuedirectly or indirectly. And because of this, private enterprise puts a lot of effort tobetween a relationship with the government in expect to gain social profit throughscarce political resource. Among those there are illegal enterprise-governmentrelationship which not only can’t increase enterprise value but also will bring negativeeffect on enterprise development or fatal damage. Reasonably regulate their relationshipcan help private enterprise to develop. It also is the need for our political construction.However, through consulting related document, I find out that documents onenterprise-government relationship research are rare. Management expert are moreenthusiastic than Political scientist. This relationship is everywhere in China, but therelated researches are falling behind.First of all, the paper illustrates and summarizes researcher’s related researchesfrom both domestic and oversea, and makes theoretical definition forenterprise-government relationship and related concepts. Through analyzing the threegovernment relationships in developed countries, I find it has important inspiration forperfecting our private enterprise-government relationship. This part also introducesGame Theory related theories to provide a theoretical base.The second part of the paper analyzes how this relationship affects enterprise value.I believe this relationship has both positive and negative impact on enterprise value. Aregulated relationship has positive impact can help the enterprise. An unregulated onehas negative impact and will damage the enterprise. So private enterprise will have toregulate their political actions to build a relationship through legal access, otherwise itwill only bring negative impact on the enterprise or even destroy the enterprise.And even more, government as a market body controls much scarce resources. Tostimulate local economy it has to sacrifice some interest and formulate related policiesto build a sound invest-environment. And relationship-oriented corruption needs highlyattention from government, government officials and entrepreneur.At last, conclusions made from analyzing. Summary the achievement and the insufficiency.