Research On The Countermeasures Of Information Asymmetry In Technology Property Rights Trading Market

The transaction of technological property rights is a major form of cooperation between the suppliers and demanders of technology. It is an important way of promoting the flow of technology and the radical allocation of scientific resource. It not only stimulates the suppliers'enthusiasm of R & D (research and development), speeds up the transfer and application of technological achievements, but also promotes technological progress and economic growth. However, in the technology market, products differ in quality, and the asymmetry in information regarding the quality and price of products exists between the parties concerned causing the market to exhibit phenomenon such as a "second-hand car market" phenomenon. Therefore, information screening ability plays an important role in the process. It is necessary to study the market transaction characteristics and technological property rights arising from transactions on adverse selections and moral hazard, and to enforce prevention mechanisms for those adverse selections and ethical issues. This process bears great significance in the healthy development of the trading market for technological property rights.First of all, the author will open the research ideas and contents of this essay with the issue of information asymmetry in the trading market for technology property rights. The author will overview the concept of a technology property rights trading market and describe the main features and the special nature of this market. The author will also conduct a general reference to information asymmetry, for it is an important feature of the market economy, which has inspired a set of theoretical systems, and has greatly influenced the development of the trading market for technology property rights. This will conclude the first part of this thesis.Secondly, as the technology property rights trading market continues to develop, information asymmetry has become more prominent, no longer limited to a few cases but up to the scales of an entire market place. For this reason, the author has studied in detail about the emerging, development, and classification of information asymmetry. Also highlighted are the backgrounds and forms of information asymmetry. This will conclude the second part of this thesis.In the third part, the author will bring to light the fact that information asymmetry has attracted concerns and set in force researches for many experts and scholars. Many countries have established relevant market system to weaken the issue of information asymmetry. Foreign scholars have contributed immensely in the research of this issue. Some Chinese experts and scholars have also analyzed in-depth the current status of the Chinese trading market for technology property rights. They've also analyzed and studied on the different types of information asymmetry. Based on the abundant research data of other experts, both domestic and international, combined with analysis of the current situation of Chinese information asymmetry, manifestations, causes and hazards to our technological property rights trading market as the research background, referencing researches of domestic and foreign scholars on this subject, the author will categorize, analyze, and summarize the obstacles presented by information asymmetry on the entire development of Chinese technology property rights trading market.Number four, technology property rights trading market is an emerging market in China. The completion and transparency of information is the foundation of market norm and its healthy development. Information asymmetry, especially the unsound system against tripartite collusion and information disclosure system, will affect the market efficiency negatively, cause investors to lose confidence, and lead to an unhealthy and disordered market. Based on the specific issues above, taken into consideration the current developmental status and direction of Chinese technology property rights trading market, the author will analyze the causes, risks, possible consequences, and impact of information asymmetry in today's Chinese market.Fifthly, the complex contractual relationships between the suppliers and the buyers of technology property rights have caused informational distribution asymmetry in the market. This asymmetry in the distribution of information may very easily lead to adverse selections, moral hazards, and other harmful behavior, causing supply and demand sides to sabotage each other's interests in the trading process, thus forming a negative impact on the market. The author will utilize mathematical modeling using game theory, starting from the characteristics of the asymmetric distribution of information, to list some problems faced by the technical trading market, especially issues, which are likely caused by information asymmetry, such as adverse selection and moral hazard. The author will apply the mathematical model to technology property rights trading market, analyze the trading process of supply and demand sides of technology property rights using game theory, build game models, and conduct more detailed analysis on the basis of information distribution studies of both sides, in order to open possibilities and search for solutions for information asymmetry within the technology property rights trading market.Lastly, based on the analysis and studies of the above, one may see the severe and grim situation the Chinese technology property rights trading market is in and market problems, such as adverse selection and moral hazard, which are caused by asymmetric information distribution and frustrating the trading market. By proposing the increase of transfer, screening, management ability, the author has designed preventions for adverse selection; and countermeasures for moral hazard by striving for cultivation of social and media surveillance, industry self-regulation, credit enhancement, etc., thus building an integrated information service system for the technology property rights market to improve the problem of information asymmetry, and promote the benign development of the market. On this basis, the author will focus and analyze in detail the importance of the involvement of the government, trade society, trading parties, government regulations, industrial self-regulation, and the public opinion. And its ability to enhance the building of electronic information platforms, formulate and publish product standards along with a series of measures that would minimize the negative effects and danger information asymmetry poses to the trading market. The author will state his own suggestions regarding the technique for improving property rights trading market supervision framework. This will conclude the sixth part of this thesis.The author will implement policy recommendations into the corresponding mechanisms. Theory is derived from practice while guiding practice. The author has chosen this research subject as a stimulus for the studies of different aspects of technology property rights trading market. Hopefully, the policy recommendations in this paper may be applied in the practice of technology property rights, fulfilling a theory's guiding role, and bettering the technology property rights trading market of China in order to provide better service for the economic development of the country.