Abstract:

he dynamic game model with incomplete information is employed to study the choice of behavior among P2P online lending platforms and between P2P online lending platforms and regulators If regulators do not supervise these platforms initiatively, the legal platforms will be pushed to operate illegally because of the existence of illegal platforms Meanwhile, if regulators supervise them strictly, the costs of regulators and the number of illegal platforms show a positive correlation relationship, and the benefits of regulators and the number of illegal platforms show a negative correlation, and it also shows a negative correlation between the intensity of punishment from supervising authorities and the number of illegal platforms Then, the cost-benefit approach is used to demonstrate that the industry self-discipline committee can help regulators to ease regulatory pressure, and thus, the number of illegal platforms can be further reduced

Key words:  P2P online lending platforms, regulators, dynamic game theory, cost-benefit approach