Static Game Research on Incomplete Information of Internet Governance-Based on Game of the Chinese Government Regulators and InternetCompanies

Internet economy is a new economic phenomenon generated in information network era and has become an es- sential element of economic development and social operation. Due to the characteristics of height credit, virtualization of economic forms and changing patterns in the Internet economy, the massive illegal criminality also has produced in dif- ferent forms at the same time, which necessitates government regulation. Based on the static game model with incomplete information, this paper makes a game analysis of the Chinese government regulators and the Internet economy enter- prises. The analysis indicates that the effectiveness of government regulation depends on the lowering cost of supervision and inspection, the increase of penalties for violations, as well as the improvement of government regulation positive im- pacts on the society and consumers.