Research on Strategy of Government for Regulating Grain Transaction Price Game

Purpose/Significance Grain is an important crop for the national economy and people’s livelihood in China, and the problem of price fraud during transactions has seriously undermined the interests of farmers, demotivated the farmers in growing grain, thereby affecting grain production and circulation. Design/Methodology By applying the evolutionary game method, this paper analyzes the game relationship between participants in grain trading, discusses the strategy selection and driving factors of grain trading subjects under the dual intervention of government regulation and subsidy, and provides theoretical basis for effective government regulation. Findings/Conclusions Results show that the combination of government regulation and subsidy policy can better constrain fraud than regulation or subsidy alone, and the motivation of government regulation goes up with the increase of social benefit, regulatory efficiency and transaction scale. To effectively restrain price fraud, the government should implement the policy of double intervention of regulation and subsidy, enhance the reward and punishment mechanism, improve the regulatory system, strengthen regulation and develop agricultural economic organizations to restrain the fraud of grain trading.