Tripartite Dynamic Game Model with Incomplete Information in Telecommunications Regulated by Government

In the price war of telecommunications in China, the dynamic game model with incomplete information of the tripartite is a general case of multi-person game model, which is more complex than the bilateral game model. Taking account of the context of China, this paper proposes a new tripartite dynamic game model, of which the government agencies are regarded as the third body. Later, it presents a behavior analysis of different main bodies in the game of telecommunications. On premise of incomplete information, we analyze the price war initiator, defender and strategy choice by regulation institutions concerned and deduce the equilibrium of initiation, resistance and separation. Lastly, hopefully we provide guidance recommendations for competition in the telecommunications industry in China market.