China's "transformation" Village Inside City Investment Research Of Profit Distribution

Reconstruction of villages-in-city is very complex because any participant can not alone finish reconstruction task that requires at least two party-villagers (village collective) and the government, even three parties (namely before two party plus development enterprise) for cooperative reconstruction. In essence, whether two party cooperative reconstruction or three party cooperative reconstruction, Reconstruction of villages-in-city can be understood for cooperative investment behavior, so the benefit distribution in the process of reconstruction of villages-in-city is essentially allocation of investment profits. At present, in the practice of reconstruction of villages-in-city, conflict of the benefit distribution is quite obvious.In this paper the efforts are made to study the benefit distribution in the process of reconstruction of villages-in-city, to induction and abstract the issues of reconstruction of villages-in-city as investment behavior, so that by Theory of Investment, the benefit distribution can be quantified in the process of reconstruction of villages-in-city. This paper is expected to get the thorough analysis of the essence of the benefit distribution through constructing the theoretical model and testing empirical data, educe the benefit distribution equilibrium by applying the cooperative game theory, and try to make mechanism design to guarantee the effective implementation of the Nash equilibrium.Cooperative game theory is suitable for analysis of the benefit distribution in the process of reconstruction of villages-in-city. The partners have common interests, but their interests not entirely consistent. The content of the cooperation agreement is distribution of interests outside behavior. It is the premise of a deal to reach a consensus about interest division through the bargaining. A stable cooperation agreement should meet collective rationality, efficiency, fairness, equality. In this paper the efforts are made to construct the coordination mechanism of benefit distribution through game theory and put forward relevant policy suggestions.In this paper, the empirical data in the case are simulated. The simulation results show that the new mechanism based on the cooperative game theory can be use to safeguard the principal’s interests, and be helpful for a fair and feasible distribution agreement. It could fix benefit distribution blur that the guiding ideology of "one village, one policy" brought. Under the new mechanism, the axiomatic distribution theory has more generality application value on the constructing of distribution policy in benefit distribution, and be helpful for improving the system efficiency of reconstruction of villages-in-city, at the same time, saving system cost.