Analysis of Fund Investment by Using Signaling Game Theory

As a type of investment tool,fund has an important role in promoting China′s economic development.However,many fund irregularities have seriously hindered the healthy development of fund industry.Based on the phenomena of information asymmetry between both parties in fund investment,this paper tries to establish a signaling game model and analyze three kinds of market equilibriums in fund investment.It is found that only separating equilibrium is the most efficient one and that fund supervision departments and fund investors should take appropriate measures to procure separating equilibrium in fund markets.