Analysis On The Local Government Game Behaviors In China’s Housing Market

With the development of our country’s economic, GDP also grew rapidly and the real estateindustry was its part of more than ten percent. On the one hand, the real estate has become a kind ofmainstay industry of China’s economic development. On the other hand, there are many seriousproblems, such as unreasonable housing supply structure, insufficient supply of middle and lowhousing,low housing affordability and lack of effective demand of consumers.The development ofreal estate is not only related to the rational allocation of land resources, but also related to theconsumers’ legitimate rights and interests.Therefore it affects the healthy development of China’seconomy.In the process of China’s housing market development, it involves the interests of the relevanteconomic entities, including central government, local government, developers and consumers.so howto effectively coordinate the relationship among those stakeholders in the housing marke has becomea subject which has practical significance.On the background of China’s housing market, this paper is based on the latest research results inthe domestic and foreign and uses game theory and methods to research the game behavior of primeparticipants in the real estate market.Firstly, the status of China’s housing market and problems havebeen described. Then based on the theory of quasi-public goods, the article analyzes the localgovernment’s vacancy phenomenon and locates the local government’s functions. Seconedly, thebehaviors of the major participants are analyzed in the housing market, including central government,local government, developers and consumers. Then game models are established among them, such asstatic games with complete information, the first-price sealed auction, typical auction games anddynamic games. Finally, on the basis of the game results, this article discusses the problems of ourhousing policies and explores orientation of the housing policies which are instituted by ourgovernment, some suggestions and countermeasures are also proposed at last.