Going to a hospital is not an easy matter for most Chinese people, with overcrowding and soaring medical costs having become two focuses of public complaint. China's medical system has been on a marketization driv...Going to a hospital is not an easy matter for most Chinese people, with overcrowding and soaring medical costs having become two focuses of public complaint. China's medical system has been on a marketization drive since the 1980s. A July 2005 report by the Development Research Center of the State Council, a think tank under China's cabinet, however, came to展开更多
We introduce evolutionary game method to analyze low-price collusion in inquiry market of Sci-Tech Innovation Board of China(SIBC)from the perspective of strategic interaction between large institutional investors(LII...We introduce evolutionary game method to analyze low-price collusion in inquiry market of Sci-Tech Innovation Board of China(SIBC)from the perspective of strategic interaction between large institutional investors(LIIs),small and medium-sized institutional investors(SMIIs),and supervision department(SD).The results show that supervision behaviors of SD,and quotation behaviors of institutional investors,are subject to supervision conditions.Under the condition that benefits of tough supervision are lower a lot than minimum benefits of light supervision(light supervision condition),SD will choose light supervision and institutional investors will turn to illegal quotation in response.Finally,a steady-state equilibrium with low-price collusion will form in SIBC’s inquiry market even with a large supervision penalty for illegal quotation.On the contrary,under the condition that benefits of tough supervision are higher a lot than maximum benefits of light supervision(tough supervision condition)and with a large penalty for illegal quotation,SD and institutional investors will choose tough supervision and legal quotation.Further numerical simulations under light supervision condition show that:(1)High-price culling rule will become a booster for low-price collusion and accelerate SMIIs’evolutionary process to imitative quotation.(2)Blindly increasing penalties for illegal quotation or reducing the culling rate is not an appropriate approach to solve the problem of low-price collusion since it cannot shift supervision condition from light into tough and make SD supervise toughly.(3)Institutional investors’choices of quotation strategies are more volatile and highly susceptible to supervision behaviors of SD when facing exogenous uncertainty.Therefore,the keys to solving the problem of low-price collusion are shifting supervision condition from light into tough through increasing incremental benefits of tough supervision,and providing institutional investors with a stable and predictable supervision policy.In conclusion,the creation of a fair inquiry market doesn’t only depend on restraint and punishment to institutional investors,but also requires the establishment of supervision mechanism those are compatible with market-based inquiry.展开更多
文摘Going to a hospital is not an easy matter for most Chinese people, with overcrowding and soaring medical costs having become two focuses of public complaint. China's medical system has been on a marketization drive since the 1980s. A July 2005 report by the Development Research Center of the State Council, a think tank under China's cabinet, however, came to
基金funded by the National Natural Science Foundation of China(72172164)Natural Science Foundation of Guangdong Province(2021A1515011354).
文摘We introduce evolutionary game method to analyze low-price collusion in inquiry market of Sci-Tech Innovation Board of China(SIBC)from the perspective of strategic interaction between large institutional investors(LIIs),small and medium-sized institutional investors(SMIIs),and supervision department(SD).The results show that supervision behaviors of SD,and quotation behaviors of institutional investors,are subject to supervision conditions.Under the condition that benefits of tough supervision are lower a lot than minimum benefits of light supervision(light supervision condition),SD will choose light supervision and institutional investors will turn to illegal quotation in response.Finally,a steady-state equilibrium with low-price collusion will form in SIBC’s inquiry market even with a large supervision penalty for illegal quotation.On the contrary,under the condition that benefits of tough supervision are higher a lot than maximum benefits of light supervision(tough supervision condition)and with a large penalty for illegal quotation,SD and institutional investors will choose tough supervision and legal quotation.Further numerical simulations under light supervision condition show that:(1)High-price culling rule will become a booster for low-price collusion and accelerate SMIIs’evolutionary process to imitative quotation.(2)Blindly increasing penalties for illegal quotation or reducing the culling rate is not an appropriate approach to solve the problem of low-price collusion since it cannot shift supervision condition from light into tough and make SD supervise toughly.(3)Institutional investors’choices of quotation strategies are more volatile and highly susceptible to supervision behaviors of SD when facing exogenous uncertainty.Therefore,the keys to solving the problem of low-price collusion are shifting supervision condition from light into tough through increasing incremental benefits of tough supervision,and providing institutional investors with a stable and predictable supervision policy.In conclusion,the creation of a fair inquiry market doesn’t only depend on restraint and punishment to institutional investors,but also requires the establishment of supervision mechanism those are compatible with market-based inquiry.
