The Game Relationship Between The Internet Finance And Traditional Finance And The Fluctuation Characteristics Of Internet Finance Sector

The rapid development of Internet finance has had profound changes in traditional finance and impact on China's financial development.Since the birth of the Internet finance,it has aroused widespread concern in academia and the industry.The Internet finance promoted the establishment and development of multi-level capital market and Pratt & Whitney finance.It forced the reform and transformation of traditional finance and promote the development and upgrading of financial products industry and improve the financial rate.But China's Internet finance is in the initial stage of explosive development,there are still many problems.In this context,this paper focuses on the Internet financial and traditional financial game analysis,and fluctuation characteristics of the Internet finance.This paper tries to clarify the current situation of Internet finance in China,explain the nature of Internet finance and its effect,and use the theories and models of econometrics,information economics,public economics,finance and operational research to analyze the mode and operation mechanism of Internet finance.Then this paper studies the fluctuation characteristics of Internet financial market quantitatively.Finally,we put forward feasible policy recommendations.This paper is divided into five chapters.This paper mainly studies three major problems:Firstly,this paper analyzed the reform effect triggered by Internet finance.The Internet finance puts the spirit of the Internet into the traditional finance;Internet finance blurs the traditional financial constraints;Internet finance forced and accelerated the reform and transformation of traditional finance;The mobile Internet finance reshapes financial form.Secondly,the dynamic evolutionary game model between the Internet finance and traditional finance is established.After the model analysis,this paper mainly believes that: in the short term,the competitive strategy can reduce the loss;in the long run,they should choose a cooperative strategy in order to maximize the benefits.Thirdly,it analyzes the fluctuation characteristics of Internet financial market.Through the establishment and comparison of a variety of GARCH model,we choose an optimal model which is simple and accurate to describe the fluctuationcharacteristics of Internet financial market.The empirical results show that the yield of Internet financial index does not accord with the characteristics of normal distribution and has obvious ARCH effect.The best fitting model is the GARCH(1,1)model of t distribution.This paper puts forward some policy suggestions on how to promote the development of Internet finance and traditional finance.The two sides conduct a win-win long-term strategic choice,learn from each other,to enhance the total revenue of both systems;They should build a credit system based on a big data to reduce the development of information communication costs and build a good credit environment;To adapt to the new financial system,the government should regulate the Internet financial markets;Try to fight to the Internet financial fraud and other "pseudo-Internet finance" to optimize the healthy interaction between the two sides of the financial environment.