Study on Compensation Standard of the Urban House Dismantlement Based on Game Theory
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Abstract:
It is a hot question in recent years in China about the urban house dismantlement and development, and the low compensation standard of the urban house dismantlement has been thought to be the main reason that cause dispute of the urban house dismantlement. After a two-player game model is built, the paper solves mix-strategy Nash equilibrium of game and analyzes the influence of improving compensation to game equilibrium. It is concluded that, if government only improve policy of compensation standard to issue, the resident ready to move with their house to be dismantled can enjoy the great benefit shortly, but the long-term policy result is to reduce the incidence of the urban house dismantlement and slow down paces that the old city transforms.
