Study on Strategy of Price in the Low-Rent Houses Property Service Market

Low-rent houses need good property service like commodity houses based on the social security of houses and the attribute of property management. The paper designs a static matrix game model between the government and the property service enterprises, and it puts forward the government must adopt the effective strategy to attract the enterprises voluntarily entering into the low-rent housing property management market. If the government adopts the strategy of overall subsidies, the enterprises will seek a balance between reducing costs and reducing staff leisure time to maximize their own effectiveness ,which leads to social welfare´s loss. Therefore, incentive mechanism should be considered in designing the model. We suggest that the government should adjust the amount of subsidies towards different objects to reach the target of social welfare maximization. For example, the government can carry on the high quota rewards to subsidy the enterprises which are of high-efficiency and low-cost .By contrast, it can carry on the low quota rewards to subsidy the enterprises which are of low-efficiency and high-cost.