Private Equity Investment Game Base on Fuzzy Optimization

This paper analyze the uncertainty impact factors and asymmetric information in the two private equity investment decision-making stages. Attributed the private equity candidate firms´ select to fuzzy optimal assessment. Build a risk-weight fuzzy optimal return model to assess the candidate firms. Get the optimal solution set. Boils down the private equity investment game to incomplete and dynamic game: signaling game. Get the combination perfect Bayesian equilibrium solution. An example is used to demonstrate the selection model and game model represent in this paper.