Game Analysis of Digital Inclusive Financial Platform and Family Entrepreneurial Choice

Abstract

The difficulty and cost of financing for family entrepreneurship are becoming increasingly prominent, and the issue of how to alleviate the financing constraints of family entrepreneurship has attracted widespread social attention. The financial services provided by digital inclusive finance platforms are beneficial in addressing the negative impact of financing constraints on households' entrepreneurial behaviour. They can contribute to the inclusive growth of China's economy. Thus the financial policies of digital inclusive finance platforms influence households' entrepreneurial choices. This paper constructs a dynamic game model of incomplete information between the platform and families based on the game perspective of micro subjects and explains the impact of the decision of the digital inclusive finance platform on households' choice of entrepreneurship by solving the equilibrium solution in the game tree, and explores the effects of factors such as the government subsidy system, costs and benefits, and the risk of platform loans on the decision-making behaviour of households and the platform by analysing the conditions required for the decision-making subjects to change their decisions in each sub-game. This essay explores the impact of government subsidies, costs, benefits, and the risk of lending to the platform on the decision-making behaviour of households so that the digital inclusive finance platform and families choose the "no support" and "no business" decisions. According to the dynamic game analysis, the government and the digital inclusive finance platform should increase subsidies to the platform, reduce the cost of household entrepreneurship and improve the guarantee system for household entrepreneurship; the digital inclusive finance platform should make use of digital information technology to enhance the platform construction, alleviate information asymmetry, reduce the cost of platform services, actively support household entrepreneurship and promote the increase of household entrepreneurship.