The Basic Decision-Making Behaviors Analysis of Adoption Subjects of Financial Innovation

This paper analyses the micro decision-making behaviors of the adoption subjects of financial innovation activities. It demonstrates that the decision-making behaviors, to a large extent, are the investment problems under conditions of uncertainty, and the subjects has the right to delay investment. The paper adopted a competitive model within the general equilibrium framework to describe the basic decision-making behaviors of innovation individuals when they are facing new innovation opportunities. The authors conclude that within the competitive market structure, compared with the decision-making on the monopoly conditions, innovators hold short-sighted attitude to potential adversaries, and all innovation subjects tend to innovate immediately and participate in the competition for the market share of innovation products.