The Application of Game Theory on China's Present Rare Earth Analysis

Abstract

China is the world's important country in exporting rare earth, but in recent years, the development of rare earth industry has not sailing plainly. This paper uses game theory to analyse root causes behind the phenomena such as the "Cabbage Price" of rare earth have been sold; the vicious and brutal competitions in rare earth industry; declined profits of export corporates; the unsuccessful policy have been carried out of sustainable development of rational development and protection of resources and the environment and puts forward some appropriate policy recommendations respectively.