Evolutionary game and simulation analysis of rent-seeking behavior in real estate development

Author(s):  
Kairong Hong ◽  
Dan Sun ◽  
Wenming Yao ◽  
Sanjun Liu ◽  
Liyuan Chai
2021 ◽  
Vol 2021 ◽  
pp. 1-17
Author(s):  
Kui Zhou ◽  
Qi Wang ◽  
Junnan Tang

In recent years, although coal mine accidents in China have decreased, they still occur frequently. Most previous studies on the evolutionary game of safety mining are limited to a focus on system dynamics and two-party game problems and lack a spatial graphic analysis of strategy evolution. The parameters adopted are too few, and the influencing factors considered are too simple. The purpose of the paper is to introduce more parameters to study which will have an important impact on the strategy choices of participants and the evolution path of the strategy over time. We construct a tripartite evolutionary game model of coal mining enterprises, local governments, and central governments. As our method, a payment matrix of participants and replicated dynamic equations is established, and we also implement parameter simulation in MATLAB. In summary, we found that the reward and punishment mechanism plays an important role in safe coal mining. Specifically, (1) intensifying rewards and penalties for coal mining enterprises and local governments will help encourage coal mining enterprises to implement safe production measures and local governments to implement central government safety supervision policies. However, increased rewards will reduce central government’s willingness to adopt incentive strategies. (2) The central government’s reward for coal mining enterprises’ safe production must be greater than the increased cost of safe production to encourage enterprises to implement such production. Economic incentives for local governments must be greater than the benefits of rent-seeking; only then will local governments choose to strictly implement supervision policies. (3) Increasing sales revenue and rent-seeking costs of coal mining enterprises can also encourage them to implement safe production. Therefore, a well-designed reward and punishment mechanism will change the behaviour of coal enterprises and improve the probability of safe production. The research presented in this paper further works on improving safe coal mining production and designing reasonable reward and punishment mechanisms.


2021 ◽  
Vol 0 (0) ◽  
pp. 1-19
Author(s):  
Lelin Lv ◽  
Huimin Li Li ◽  
Zhuofu Wang ◽  
Chengyi Zhang ◽  
Ran Qiao

Major infrastructure projects (MIPs) possess significant strategic positions in the national economy and social development. However, recently, the rent-seeking behavior between supervision units and project contractors has intensified in project construction. This paper aims to study the behavior decision-making of stakeholders in rent-seeking behavior supervision system of MIPs. In the complex and uncertain environment of MIPs, game players have cognitive bias and value perception preference. Therefore, this study introduced prospect theory and constructed the perceived return matrix and evolutionary game model of MIP rent-seeking behavior supervision among project owners, supervision units, and project contractors. From the perspective of risk perception theory, the reasons for the behavioral tendencies of game participants and the conditions for the steady state of strategy selection were explored through system dynamics simulations. The results showed that the stable state of the optimal strategy in the rent-seeking behavior supervision system of MIPs is related to the cognitive bias of the game players and is influenced by the level of regulation cost, the intensity of punishment and the size of accident losses. The contribution of this study lies in providing theoretical basis and decision support for constructing a long-term preventive mechanism for rent-seeking activities in MIPs.


2011 ◽  
Vol 9 (1-2) ◽  
pp. 78-90
Author(s):  
Tarry Hum

This policy brief examines minority banks and their lending practices in New York City. By synthesizing various public data sources, this policy brief finds that Asian banks now make up a majority of minority banks, and their loans are concentrated in commercial real estate development. This brief underscores the need for improved data collection and access to research minority banks and the need to improve their contributions to equitable community development and sustainability.


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