The Rent-seeking Behavior Analysis Of Each Economic Subject In Real Estate Market

As mainstay industry and growth engine of national economy, real estate industry has contributed a lot to keep increasing rapidly of Chinese economy. The growth of the real estate remains at20-something percent and much higher than the rate of economic growth, keep stimulating the sustained and rapid growth of national economy. More than that, real estate industry has long chain and large scale, which contributes great the utility and the promotion of utility to upstream and downstream industries, the real estate industry is the leading industry of China. Fluctuations in the real estate industry will directly affect the macroeconomic situation of our country, at the same time, China’s real estate industry due to the short history and fast speed, Accumulated a lot of negative effects with the growing economy, such as the irrational growth of the housing price, the chaotic situation of domestic land market, the government function is unclear, the non-standard behaviors of real estate enterprises and the market disputes and so on. The land resource cannot be efficient allocation just rely on the market power, Most of the time, it need government intervention, supervision and even direct decisions, which lead to the power rent-seeking events cannot be totally prohibited.The rent-seeking activities on the real estate market competition is a kind of unproductive activities, is a net loss of social welfare. First of all, the real estate developers in order to obtain monopoly, to lobby related departments, need to waste of resources for the government’s special protection. Second, in response to the developers of rent-seeking, the government needs to waste resources to supervision and punishment or government wastes time and energy to a rental, actively seeking "conspiracy" with the developers. Finally, when, after the completion of rent-seeking activities in the market with a large amount of rent-seeking, therefore, the supervision of the government departments need to waste a lot of time and energy to undertake administrative, otherwise it will affect the real estate industry’s long-term sustainable development. And rent-seeking activities, divided government and developers monopoly profits at the same time, the relevant producers and buyers will pay the price, the price of higher profits than a rent-seeking, so led to a net loss of social welfare.In this paper, under the assumption of bounded rationality, the relationship between the different stakeholders in the real estate market, from the perspective of game theory, establish a game model, analysis of developers, local government rent-seeking behavior, this paper sums up the curb rent-seeking behavior in the real estate market from the following several aspects:first, the reform of the past as a single economic indicators as the core of performance appraisal system. Second, perfect the mechanism of the real estate market, reduce government intervention in the real estate industry. Third, the government USES a portion of the land used for construction of affordable housing. Fourth, speed up the construction of the real estate industry related laws and regulations, perfecting the supervision and punishment mechanism of real estate industry.