Game Theory Analysis And Policy Research On Price Of Real Estate In China

Since the founding of New China, the real estate market has experienced from scratch, from slow to fast, from fine-tuning to adjust the overall development process. But given the relatively short time compared with developing countries, the real estate market is not mature, there are many problems which led to the real estate market, causing fluctuations in housing prices continuing to rise, has seriously exceeded the capacity of ordinary residents. Although since the second half of 2013, the economic slowdown, in addition to first-tier cities, housing prices fell in most cities the trend, but the rate of decline is slow and underpowered, prices are still maintained a high level. According to real estate development experience of developed countries, China’s price fluctuations inherent abnormality. The article is based on this background,selecting the real estate prices which is the meeting of economy and the real estate industry as an object of study, choosing game theory as the theoretical basis, from supply and demand levels for all kinds of game among real estate market players to explore the reasons for high prices produced, and on this basis, combined with our national conditions, explore solutions to this problem of high prices.This study using game theory as a guide, on the basis of the model analysis, using qualitative and quantitative analysis, specification and demonstration of combining the basic principles of a combination of logic and history, the integrated use of numerous research results, a variety of research methods, the each game behavior of economic agents in the real estate market and high prices in a unified framework to analyze, and then analyzes the formation mechanism of China in recent years and the root cause of high prices.The paper describes the development history of the real estate market, rational view of the status of development of the property market, the measure by three internationally recognized, the price earnings ratio, the price of houses than then-prices, as well as rates and CPI synchronization rate analysis reveals that the current house price bias high status. Where the price earnings ratio is the most important measure, with the other two indicators match, our prices are already showing a price bubble, there has been some speculation, deviated from its fair value, far more than the consumer bear the ordinary residents ability, and uncoordinated development of national economy.Paper use game theory to explore the reasons for high prices, first introduced some basic knowledge of game theory, including the definition and development of game theory, game elements and classification. Secondly, the nature of the real estate market and real estate market players feature in the transaction, and to explore the Game Theory problem of high prices is feasible.From the supply-side analysis of the reasons for price fluctuations, the main game between the central government and local government policy on market regulation, the game between the real estate business and local government on land prices, real estate between the game on land and real estate, banking and cooperative game between the borrower and the bank loan interest rate on the game between the standards. Overall, out of consideration to maximize the interests of local governments to the central government’s regulatory policy is not actively performed. Local government is in the game and the real estate business in the dominant position, have an incentive to raise the price of land, and then the real estate business will be reflected in the price on the cost of land. There will be many times repeated game between the real estate business, the best option is to seek to achieve. Similar to local governments, banks are not always actively implement the central government’s financial regulatory system, will select the inter-bank lending standards easing will lend to real estate funds, real estate funds have sufficient reserves, adequate funding so that it frequently gains chain Wang, all aspects complement each other, so that for many years the volatility of house prices to rise and eventually exceed the capacity of the residents.From the demand side analysis of the reasons for price fluctuations, mainly the game and the real estate business and consumer between two types of consumer price expectations regarding non-cooperative game. Due to the large number of consumers in the market and the information is not complete, in order to avoid Ta actively enter the real estate market, and in order to avoid price increases credible threat, had to accept the current high prices, but over the past two years by the economic situation and the structure of supply and demand changes, consumers are generally beginning to show on the sidelines, which further caused to the real estate price pressure. This is also the past year, the government uses a variety of policies to save the world, but most urban housing prices and sales are still reasons for the decline. Speculative consumers is an important factor causing fluctuations in the real estate market, not the cause house prices continuing to rise. Game balance between consumer and residential real estate business has become between now do not buy-the future buy-cheap. The demand side of the game, explains why our country is no longer sustained rise in housing prices.Finally, starting from the real estate market players are given to improve the outcome of the game between the main strategies, namely the use of administrative, legal, economic and other means to give a solution to the current high prices of suggestions.The real estate industry is a pillar industry of China’s basic nature, not only related to the housing problems of the people, but also to the development of many related industries. The research on the price is necessary, the current high prices have caused a lot of social problems.Finding the underlying reason for the high prices will be able to develop and implement reasonable and effective price control policy for the healthy development of China’s real estate market provide valuable reference.