Stock Pricing Analysis between Bidders and Sellers Based on Stackelberg Game Theory

Abstract

With the development of institutional investors, the game between institutional investors and individual investors has become an important factor affecting the stock price. Exploring the buying and selling decisions made by different investors in a certain stock market can help to predict stock price. In this paper, we use the bidder to represent institutional investor and the sellers to represent individual investors. We propose a Stackelberg game model which achieves the optimal income utility of both parties. We also explore the equilibrium point and conditions for the establishment of equilibrium. Finally, we tested the feasibility of the Mechanism through simulation.