The Game Theory of Power in the Analysis of the Institutional Change

Institutional change is the process of people pursuing the potential benefits,also is the process of playing power game between the stakeholders.This paper builds double evolutionary game model,reveals the dynamic mechanism of power game in the transition of institution,and explains that the equilibrium of power game determines whether institution will change and how it will occur.The power of the stakeholders determines their status in the process of institutional change.The transitional direction of institution will meet the demand of the stakeholder who has greater power.With the ratio of power controlled by stakeholders varying,the institution evolves.