Research On Decision-making Behaviors Between Governments:from The Perspective Of Game Theory

It is indicated in the third congress of the Eighteenth Central Committee of CCP that:the market's decisive role for resource allocation should be fully taken advantage of,which means that the social resources will be reasonably allocated with their benefits maximized via the market.To achieve this goal,the government needs to play its positive role in the market.This paper aims to study the decision making process of governments from the game theory perspective,in hope to understand,interpret and evaluate government's decision making process at all levels,and to demonstrate(?)verify the feasibility,reasonability and necessarily on the methodology,rationale(?)approach of the game theory.This thesis contains the following five chapters:Chapter 1 introduces academic articles relate to our study,including experts'understanding of the relationship between the government and the market,the expected responsibilities that government should undertake,and(?)bargain activities between market participants and government.In addition,Chapter 1 gives some general comments on previous studies.Chapter 2 summarizes some related basic concepts.Chapter 3 to Chapter 4 are the major parts of this paper.In chapter 3,the interactions between local government and central government during the decision making process are analyzed.More specificly,two game situations are analyzed:the interactions between central government and single local government,and central government and multiple local governments,to indicate the strategic interactions between local government's execution of central policies and central government's supervision on the execution.A two-players game theory model and a multi-players game theory model are established,the equilibrium situation of the game from strategic and mixed-strategic perspectives are analyzed and the feasibility and efficiency of leveraging game model describing the interactions between central government and local governments are discussed.As a practical case,this chapter analyzes the execution of real estate policy issued by central government.Finally,this chapter proposes some related suggestions.Based on chaper 3,chapter 4 analyzes the decision making process among same-level local governments from the game theory perspective.In similar,this chapter discusses two game situations:f the interaction process between two same-level local governments,and the interaction process between multiple(three in this case)same-level local governments.An investment game is introduced as an example and analyzes the situation in which central government will participate in the process and in which central government will not.It shows the efficiency of leveraging game model to analyze the interactions among same-level local government and indicates the importance of macro control by central government.Finally,this chapter proposes some advice on the strategy to standardize the relationship among government based on the result of analysis.The last chapter summarizes the results of this study and shares perspectives for further development.