Imperfect Information Game Analysis of Electronic Commerce Transactions

Electronic commerce is a business model which uses Internet as a primary tool and allows the seller to provide goods and services to the buyer by the E-commerce platform. It has broken the limitations of traditional business model and has greatly improved the efficiency of the transaction. Because of information asymmetry in E-commerce transactions, the buyers couldn't fully grasp the information of the seller's credit, the quality of merchandise and so on, so sometimes it's difficult to complete the transaction in a virtual network environment. This paper, from the perspective of imperfect information static and dynamic games, is attempted to discuss the two players' strategies and playoffs in different conditions. Finally, the paper suggests a few reasonable and effective measures to establish the better E-commerce environment based on the game conclusions.