Author(s)

Tian Chang and Xingbang Zhu

Corresponding Author

Tian Chang

Abstract

Government subsidy is critical to the rapid growth of the Internet of Things Enterprises in the future. Considering the optimal resource allocation, a Signaling Game model was used to balance between the internet of things enterprises and the government. Owing to information asymmetry and imperfection, four kinds of equilibrium including complete success, partial success ,complete failure and near failure come to existence, and efficiency of market equilibrium will be influenced by the disguised cost and expected risk cost, therefore, the key to achieve completely successful balance is to improve the camouflage cost of enterprise fraud and the expected cost of risk , and thus four targeted policies are proposed based on the results.

Keywords

Government subsidies, The internet of things Enterprises, Signaling game, Equilibrium