Application Of The Game Theory In Chinese Security Market

Game theory is the theory settling issues of strategy-making with multiple participants. It has become one of the most power tools in economics. This thesis aims to apply the game theory to Chinese security market and to analyze the relevant problems of the market with game theory.Since Chinese security market was opened in the early-1990s, it had been flourishing at the earlier times. However in resent years the security market faced continual decline, which was not in accord with the national economic development of China. This thesis tries to attack these problems from the angle of the investor with game theory.At first, the game theory and the related equilibriums are introduced in detail. The participators' actions are accord with the suppose conditions in the game models, and points that applying game theory to security market is a worth means. Then the thesis introduces the investment circumstance in security market. One is the objective circumstance, security market; the other is the subjective circumstance, the participators in market. Finally from the three different angles including stock exchange and individual investor, institutional and individual, and individual and individual, the thesis establishes the game models and analyzes the decision-making. The essence causes of some phenomenon in the Chinese security market are rationally explained and the responses are considered.