Non-cooperative Game Model And Its Application In China Stock Market

The Shanghai stock exchange had been established in 1990,through problems and difficulties.The number of listed company on China stock exchange had been accumulated from 8 to 3062 by the end of march 2019.Although China bill market had been developed with rapid speed in nearly 30 years,but the market still faced some problems,especially compared with,the proportion of individual clients was too large.That is the China stock market situation which are consisted of a large number of individual clients that investment volume occupied large proportion of China stock market.But compared with large or even small institutional investor,the capital and information occupied by individual clients were so poor.The number of individual client was so large but they were not united,and that is why the profit of individual clients often had been taken up by institutional investor and the confidence of individual clients had been hardest hit.In essence,the aim entering China stock market of list company was to finance for reproduction.But the confidence of individual client as investment subjects in China stock market will seriously influenced the China stock market finance function.So game behavior analysis on large and small institutional investor,especially on client and institutional investor has significant sense for long term stability development of China stock market.In this paper,the game behavior model between institutional investor and individual client had been established based relevant research at home and abroad.(1)Analyzed the game behavior of institutional investor and individual clients and build the game behavior model on institutional investor and individual clients.According to fact of situation of China stock marker,the optimized results based on profit-maximizing of institutional investor and individual clients and the condition of institutional investor's success and failure.(2)proposed the model to analyse the game behavior between institutional investor based on cournot,stacklberg and chamberlain model.Based on the models,numerical experiment were calculated,which obtained two institutional investor can reach tacit agreement in order to win both maximize-profit.