Asymmetric Evolutionary Game Study On Cooperation Of Financial Regulation Between The Three Cross-strait Regions

In the post-crisis era,while each country reforms financial regulation and supervision,and strengthens international cooperation,Mainland-Hong Kong and Mainland-Taiwan of China do strengthen financial supervision cooperation.Reviewed the process of cooperation in financial regulation,we found that it is a dynamic process of step by step,the volatile ups and downs.Then,this paper tries to research the mainland-Hong Kong's and mainland-Taiwan's long-term financial regulatory cooperation characteristics and its influencing factors of the stable conditions,and study whether they can achieve the long-term condition through cooperation,and which factors influence the cooperation.From the neo-political economics perspective,cost-benefit asymmetry exists in the cooperation.Using the cost-benefit analysis,by contrast of mainland-Hong Kong's and mainland-Taiwan's financial regulatory cooperation,we found that the level of cooperation is determined by small economies' costs and benefits,large economies gain more benefits from cooperation;The smaller the difference between the size of economies,the smaller the political and economic differences,the higher the level of cooperation and benefits.By constructing mainland-Hong Kong's and mainland-Taiwan'gains matrix,we use the asymmetric evolutionary game to analyze their financial regulatory cooperation in the face of external and internal shocks,the results to achieve the cooperation depends on the net income of excluding rollover effect.When the net income of excluding rollover effect is negative,(cooperation,cooperation)or(no cooperation,no cooperation)is a stable equilibrium strategy;the greater the yield and premium,the higher the probability of the cooperation,that is,measures to reduce loss,improve the coefficient of premium will help improve the probability of cooperation.When the net income of excluding rollover effect is positive,(not cooperation,cooperation)or(not cooperation,cooperation)is a stable equilibrium strategies;Earnings yield and premium coefficient of one party,cooperation probability is smaller,the greater the probability of a ride.In addition,according to the trend of cooperation to strengthen supervision between the three Cross-trait Regions,(cooperation,cooperation)is likely to be the final stable equilibrium,narrowing the difference of overall size differences and political and economic factors,can promote the realization of cooperation.Matalab2010a numerical simulation was used to determine the threshold value,earnings yield and premium factor's influence on the stable equilibrium strategies.