Research On Herding Effect Of Consumer Groups In China's Real Estate Market Based On Information Cascades Experiment

The real estate industry is an important industry of the national economy in our country,which has a strong relationship with many other industries and people's lives.It plays an important role in promoting economic development and improving the living standards of residents.So an orderly development of the real estate industry is very significant.Due to the late start of the marketization reform of the real estate market,China's real estate market is not very mature yet.In recent years,the excessive housing prices,rapid growth of investment and other issues seriously affect the orderly development of the real estate industry.Therefore,it is necessary to investigate the causes of the rising prices in China's real estate market and provide some recommendations for the macro-control policy of the real estate market.The real estate industry is quite particular to a certain degree.It is an imperfectly competitive market because of the fixed position,heterogeneity and scarcity of land resources.In our country,the real estate market is a typical incomplete information market.And "herding effect" usually appears in an incomplete information market.The herd behavior of the real estate market in our country usually occurs in the consumer groups,which is mainly determined by the incomplete information of the real estate market and the limited rationality of the consumer groups.Through theoretical analysis and establishment of evolutionary game model,this paper explains the causes and forming process of the herd effect of the consumer groups in the our real estate market.There are many reasons leading to this kind of herd effect.The emphasis of this paper lies on the incomplete information,and the experiment is carried out by adjusting the level of incomplete information.Our experimental data show that the incomplete information has a significant impact on the herd behavior of the real estate market.Finally,this article gives some suggestions to promote the development of China's real estate market with an emphasis on information disclosure,including the establishment of the real estate market information disclosure and exchange platform,and increasing government's regulation and control efforts.