Research On The Mechanism Of Reputation To The Formation Of Venture Capital Network

In the venture capital market,venture capital institutions are derived from the joint investment mechanism and form a huge venture capital network.The formation of venture capital network is the endogenous process of reputation communication activities,and the intensity of reputation transmission affects the equilibrium state of venture capital network.On the basis of the extensive literature review,this paper applies the theory of network game and the theory of venture capital,from the perspective of reputation transmission intensity,studies the formation mechanism of venture capital network,obtains strict Nash network structure and strict effective network structure,and carries out fairness analysis and comparative static analysis of the obtained network structure.Specifically,the main findings of this dissertation include:(1)The formation mechanism of the venture capital network in the region when there is no reputation decay.The strict Nash network is either a central star network or an empty network.A strictly efficient network is either a minimum connected network or an empty network.In the star network launched by the center,the network range is a strictly increasing function of reputation propagation intensity;the equilibrium income of marginal venture capitalists is a strictly increasing function of the intensity of reputation propagation;the equilibrium income of a central venture capitalist is a strictly concave function of reputation propagation intensity.(2)The formation mechanism of venture capital network in the region when reputation decay exists.When the intensity of reputation propagation is low,the complete network is the only strict Nash network and the only strictly efficient network.When the strength of reputation propagation is high,the empty network is(but not only)the strict Nash network,and is the only strictly efficient network.When the intensity of reputation propagation is in the middle level,the strict Nash network and the strict efficient network structure are deeply affected by the reputation attenuation coefficient,and show a complex star network structure.In the star network structure,network domain is strictly increasing function of reputation propagation strength,edge equilibrium profits of venture capitalists and venture capitalists center changes with the reputation propagation strength changes of the opposite sex.(3)The formation mechanism of cross regional venture capital networks when reputation decay exists.When the intensity of reputation propagation is low,the complete network is the only strictly efficient network and the only strict Nash network.When the intensity of reputation propagation is high,the empty network is a strict Nash network,the only rigorous and effective risk investment network,which may be star network or empty network.When the intensity of reputation communication is in the middle,the star network is a strict Nash network,which is closely related to the regions where the venture capitalists are located.The research results of this paper make up for the shortcomings of existing empirical research,which can help venture capitalists to gain information superiority,connection advantages and income advantage through reputation transmission,and provide far-reaching guidance to explore and form an effective venture capital network.