Research on Behavior of Regulators and Enterprises about Carbon Emissions Based on Game Theory

ABSTRACT

Because of many principals involved in the process of carbon reduction, government regulation often presents some problems, which are harmful to the environment. In order to minimize the harm to the environment, the government regulators should study enterprises’ behavioral characteristics and the corresponding regulatory policy. This paper built the enterprises behavioral choice model of signal transmission game, analyzed four kinds of refining Bias equilibrium which include the confused equilibrium, separation equilibrium and the semi-separating equilibrium, and solved semi separating equilibrium. The study found that the appropriate regulatory measures of government departments would increase the cost of enterprises’ false declaration, and standardize market order.

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