Research on Financial Regulation and Financial Innovation Based on Evolutionary Game Theory

After the global financial crisis, people began to re-examine the relationship between financial regulation and financial innovation, especially in US. Financial regulation and financial innovation tend to promote each other's development, which formed a "regulation innovation -re-regulation - re-innovation" dynamic game process. On the basis of relevant literature and the replicator dynamics equation in evolutionary game theory, this paper establishes a evolutionary game model between regulation institutions group and financial institutions group. Through solving the theoretical model, the paper obtains the evolutionary stable strategy of regulation institutions group, financial institutions group and the two together respectively.