Evolutionary game analysis of monitoring activity of the unreasonable use of transfer payment based on duplicative dynamic

Hong-en Fu and Yu-lin Liu

Abstract

In order to narrow the development gap between east and west, China central government have given a lot of funds to the western underdevelopment province. Unfortunately, this gap is still growing because local governments use the funds unreasonably. Analyzing the strategies ’choice on the interaction between the funds regulators and local government with the evolutionary game theory, a model of asymmetric game between them is set up and the steady state of the monitoring activity under this condition is analyzed, and some suggestions about transfer payment funds supervision are given in this paper.