Analysis And Strategy Research On Information Asymmetry Theory In Postgraduate Entrance Examination Market

With the upsurge of Postgraduate Entrance Examination(P.P.E) from 2000, the economy of P.P.E has increased fast, and the market of P.P.E has also well developed. There is nearly 3 billion a year in consumer demand which makes the market of Postgraduate Entrance Examination gradually becomes the second largest market in China's education industry which is only smaller than the College Entrance Examination market on scale. But as the major component of the Postgraduate Entrance Examination market, the training market has a lot of problems with its boom which restrict its in-depth development.In the respect of Commodities Market Theory and Economics of Information, there is a serious problem about information asymmetry in Postgraduate Entrance Examination market. On one hand, in order to maximize the profits, some training schools keep some important informations of their commodities dark by mendacious advertising and promise which cause the consumer can't judge the cost-effective products clearly. The deeper consequence is that with consumers make the converse choices, the adverse selection is happened: the substandard products expel the good products, which produces vicious circle; on the other hand, because of the particularity of the training products and lack of legal protection, the training schools are easy to make some "moral risk" activities to hurt consumers' interests.The paper is divided into six parts. The first part tells the the research background, research actuality, research methods, research contents and the creativtity of this paper. The second part mainly discusses the features, the existing problems and their consequences of the Postgraduate Entrance Examination market from its actuality and process of development. The third part is about the analysis of the Information Asymmetry Theory, mainly discusses the adverse selection model, the moral hazard model and the signaling model. The fourth part analyses the cause, type, market circumstance and aftermath of the information asymmetry problem in Postgraduate Entrance Examination market by using the Information Asymmetry Theory, and studies the market players' countermeasure choices under the situation of information asymmetry through modeling on Game Theory. The fifth part concerns on the countermeasures to solve the information asymmetry problem in Postgraduate Entrance Examination market. From the perspective of Commodities Market Theory, the solution must involve the market player's self-improvement and government's mandatory management; from the perspective of network information platform, I analyses the function of Internet on perfecting the information asymmetry problem. And the information transmission model is advanced. At last, in the six part, the paper ends in the case analysis which shows the effection of internet on improving the information signaling model, information communicating model and information searching model, and makes the information tends to be symmetrical in Postgraduate Entrance Examination market.