Static game research on incomplete information of internet governance- based on game of the chinese government regulators and internet companies

Abstract

Internet economy is a new economic phenomenon generated in information network era and has become an essential element of economic development and social operation. Due to the characteristics of height credit, virtualization of economic forms and changing patterns in the Internet economy, the massive illegal criminality also has produced in different forms at the same time, which necessitates government regulation. Based on the static game model with incomplete information, this paper makes a game analysis of the Chinese government regulators and the Internet economy enterprises. The analysis indicates that the effectiveness of government regulation depends on the lowering cost of supervision and inspection, the increase of penalties for violations, as well as the improvement of government regulation positive impacts on the society and consumers.