Adverse Selection, Interest Game and Retardance of Policy Implementation

The retardance of policy implementation is an important factor which has perplex ed public policy research and policy implementation in practice for a long time. In this paper, the authors utilize the concept and theory of "adverse selectio n", which is a core concept in Information Economics, combine it with interest game and policy implementation, and form the perspective of Game Theory, so as t o analyse the problems in policy implementation. The paper draws the conclusion that the process of policy implementation is a classic model of principal-agent relationship. In the circumstance of information asymmetry and incentive incompatibility, there will be two kinds of adverse selections, which could be named policy implementation subject adverse selection and policy object adverse selection. The substance of these two kinds is interest game, and they will cont ribute to the retardance of policy implementation inevitably. Based on the above analysis, combining with the characteristics of policy implementation, this pap er gives some suggestion to keep away the adverse selection in policy implementa tion and make better the situation of retardance of policy implementation.