The Games between Central and Local Governments in the Newest Regulatory Policy of the Real Estate Market

摘要

Chinese central government has promulgated a series of policies and measures to regulate the real estate market to restrain the rapid increasing of the house price, but the effect seems unsatisfactory. This paper mainly aims at analyzing the origin of this issue by the game theory, thus we establish an Intergovernmental Static Nash Equilibrium model and a Mixed Strategy Nash Equilibrium Model as well. Based on the final equilibrium point, we find that it's the uneven interests' distribution between central and local government which leads to the failure of the newest policy, and strengthening regulation and adjusting the structure of interests' distribution can be efficient ways to solve the problem.