Game theory analysis of P2P regulation

As the Chinese on-line private lending size expands and its influence on financial system deepens, how to regulate it has become a vital issue of financial regulatory department. In this paper, we constructed the game model among investors, p2p lending platforms and the government, and analyzed equilibrium path of platforms choice under private lending registration system. We concluded that the means of reducing tax, reducing information asymmetry and government rent-seeking, and increasing penalty of law violation can accelerate the exposure of p2p lending platforms, and also proposed several suggestions from the perspective of information asymmetry.