Game Analysis Of Real Estate Prices

Given the importance of the real estate market in the national economy, theGovernment will be in their own interest to influence the price of real estate.Real estate associated with the height of GDP, as well as local government andlinked to the high GDP, economic macro-control of the Central Government,and so on, are the source of government influence housing prices. Localgovernments can pass real estate relocation and improve compensation, landauction, controls or cancel and financing to build affordable housing, even bymanipulating the media to influence public attitudes can affect property prices.Of course, in most cases, are driving up real estate prices. For the CentralGovernment, pushing up house prices can drive the development of relatedindustries, raising the standard of living, but high prices will affect the economicstability, while inadequate consumption, excessive savings, to the detriment ofthe adjustment of industrial structure.Therefore, itself towards a rational and utility maximizing Government, wecan pass on the real estate market’s price game analysis, discussion on theGovernment’s actions will eventually achieve the level of effectiveness, basedon the analysis of real estate trend of the past and predict future directions.The game model with incomplete information in the article, because marketplayers are not very accurate grasp of the utility function of the Government, orthe Government’s policy objectives, so the real estate prices are for governmentregulation is the best policy. But if the game is repeated, Governments have tochoose at any time to control real estate prices are subject to the Government’sown proceeds of future usefulness outside the discount factor used fordiscounting, but also by market probabilities a prior judgments of the type ofGovernment.Policy on real estate market we can find in the game, Governmentregulated prices in the real estate market is not always able to maximize theirown utility. For a wise Government, therefore, better to put yourself wheremarket supervisors and non-participant. At the same time, when the Government clearly has its own what type should be selected should also be appropriateadjustments to the system, so that the market can more accurately anticipated theGovernment’s actions, in order to achieve our long-term development of awin-win situation on both sides of the good situation.