Changsha City Residential Market, Game-based Price

In September 27th 2007, Chinese government constituted some financial policies about real estate industry to limit consumers to buy too many estates. Therefore, the price of houses in cities of China——no longer metropolis or towns had decreased a lot. So that many corporations of real estate were very hard to maintaining their living. It also made the price of grounds in Chinese cities reducing a lot. So, all the local governments and realestate agents expected the Chinese central government to do something to save the market of real estate.In October 22th 2008, the Chinese central government issued some special policies to activate the market. Therefore, the price of houses had been rasing so quickly from June 2009 so that the government had to control it. Then, in April 17th 2010, the government of China constituted several serious financial policies again to make the market being healthy. The price had been falling again.The thesis have studied several sides such as demand of market, costs and prices of houses and the influence of real estate industry for Chinese economy, and so on. By making use of the method of "Game theory", the author have analyzed the end point of price for the game that between consumers and businessmen, by working out the "Bayes-Nash equilibrium". And then, the author also studied when this game will be end. Actually, the result of this research tells us no longer consumers or businessmen could not contoll the time of the end.Finally, the author also pointed out that the most important task for realestate agents would be inventions of products in the future.