Reseach On Affordable Housing Pricing Mechanism Based On Stackelberg Differential Game

Affordable housing system academic discussion and public opinion in China is more and more disputed and especially its pricing problem is in question. The purpose of this paper is to explore the pricing mechanism of the affordable housing. The employed mainly methods are the theoretical and empirical research, qualitative and quantitative analysis. The Stackelberg differential game model is adopted to simulate economic behavior of pricing participation subjects, and the paper elaborates that the pricing mechanism of affordable housing may rationality. The results indicate that the price forming mechanism of affordable housing depends on the local government and real estate developers’ long-term game process. The government cannot be unlimited compensation and developers are reluctant to construct plenty of affordable housing, which the selling price of affordable housing gradually trends to balance and its simulation results close to actual experiences. It is conclude that interaction between the incentives intensity of local government and the pursuit profit of real estate developers drives the pricing process, the affordable housing system is not discarded and keeps up a certain quantity of supply of affordable housing, and the people with high housing marginal utility is assured to have opportunity to buy affordable house, which will reduces the loss of public house welfare.Affordable housing is an important part of Chinese current housing security system, but in the specific process of construction and transaction, there is a variety of drawbacks, which its outstanding performance in the inadequate of supply, the exceed standard of construction area, the purchase of qualified audit lax, the lack of funds for construction and the sale price out of control of affordable housing. Game economic activities of local government and house developers affect pricing and quantity of supply of affordable housing. Among them, the sale price of affordable housing which is directly involved to all qualified buyers, and moreover, it is too difficult to effectively play a security function.The Stackelberg differential game model is adopted to simulate convergence trends of pricing and quantity of supply of affordable housing and local governmental compensation. Based on the latest research progress at home and abroad, firstly, the paper analyses that the supply, demand and price level of affordable housing in China come to its existing problems and reasons, and moreover, which elaborates the theoretical basis for the pricing of affordable housing; Secondly, based on the competition model of Stackelberg oligopoly and price leader of theoretical level, the paper re-assumes some assumptions of the model, and improves and constructs a new Stackelberg differential game pricing model, which simulates the strategy space of game of all the players participated in the pricing process; Finally, through the comparative study of the case, we use respectively new Stackelberg differential game pricing and correlation model to simulating the highly developed areas, the developed areas, the general areas, the less developed areas and the poor areas, which comes to reasonable relatively price level of affordable housing of socio-economic development of different regions. And which puts forward the reasonable and operational suggestions.Research on the pricing mechanism of affordable housing is very essential and meaningful. In theory, it can enrich and expand the existing theory of the real estate market price. In practice, the research conclusions that can provide practical decision-making basis for local governments limiting the price of affordable housing, strategic support for the real estate developer constructing of affordable housing, and more accurate price information for the consumers purchasing of affordable housing, and also have some reference value for the certain area pricing of affordable housing, which will better solves the housing problems of low-income families.