Imperfect Information Game Analysis of Electronic Commerce Transactions

Electronic commerce is a business model which uses Internet as a primary tool and allows the seller to provide goods and services to the buyer by the E-commerce platform. It has broken the limitations of traditional business model and has greatly improved the efficiency of the transaction. Because of information asymmetry in E-commerce transactions, the buyers couldn´t fully grasp the information of the seller´s credit, the quality of merchandise and so on, so sometimes it´s difficult to complete the transaction in a virtual network environment. This paper, from the perspective of imperfect information static and dynamic games, is attempted to discuss the two players´ strategies and playoffs in different conditions. Finally, the paper suggests a few reasonable and effective measures to establish the better E-commerce environment based on the game conclusions.