A Game on Supervision of False Activities in C2C Electronic Marketplace

This paper analyzes a differential game model describing the interactions between the government agency and the seller in C2C electronic marketplace and solves it by using Pontryagin maximum principle. We show that the open-loop equilibrium is subgame perfect. The optimum steady-state control strategies of both sides are derived under symmetric and asymmetric information, and results are compared in order to provide guidance for the government to supervise sellers with false behaviors.