A Study on the Behavior of Multiple Subjects in the Real Estate Development Process

摘要

The purpose of this study is to identify the key strategies used by economic agents during the real estate development where government's regulation and control policy introduces or not reward and punishment mechanism. Using the methods of extensive-form game and game tree, this paper analyzes economic agents' behaviors, decisions and results, thus identifies the key strategies in the process of real estate development. Results from this study indicate that while government's regulation and control policy fails to introduce the reward and punishment mechanism, most decisions made by the economic agents are in the case of local government and developers' rent-seeking; otherwise, economic agents' decision-making are under normal condition. As a consequence, to legalize the process of real estate development and help the economic agents' healthy operation, it is imperative for government's regulation and control policy to introduce reward and punishment mechanism.