Game analysis on institutional difference and regional economic disparity

This paper analyzes the cause of regional economy disparity problem in terms of institutional difference.In the game between the central and local government,because of the difference of conditions of initial stage,the central government makes different policies and arranges institutional innov-ation of local governments,and local governments would also adopt different equilibrium strategies.Therefore,the difference of institutional change has been formed.Consequently,the institutional difference among the areas has produced.Therefore,the institutional differences among the areas will exert an enormous influence on the economic performance of every area and expand disparity of regional economy.