The Three-party Evolutionary Game Under "Re-familization" Family Policies

Abstract

With the development of society and the change of fertility culture, the fertility rate is gradually decreasing around the world, which leads to a lot of problems, so the Chinese government is seeking effective family policies to improve fertility levels. Based on the evolutionary game theory, the article defines the three participants in the evolutionary process of fertility choice and their payoff functions, then constructs a three-party evolutionary game model among individuals, firms and local governments, and finally analyzes the strategic choices of each party under the government-led family policies. The findings suggest that economic policies that directly give cash incentives and tax benefits are more effective in increasing fertility rate and creating a fertility-friendly social environment. Thus, the author suggests that the government should mainly use economic policies to promote the increase of fertility level and solve the social problem of low fertility rate.