Setting punitive damages system based on game theory in China´s anti-monopoly law

China´s Anti-monopoly Law absorbs the advanced idea of anti-monopoly law in the world, which forbids monopoly behavior rather than monopoly structure. Two game models are built, one of which is between government and monopoly enterprise, the other one of which is between injured enterprise and monopoly enterprise. The paper obtains that the probability of monopoly behavior is mainly affected by three variables: fines ratio in total sales revenue, the number of subjects participating in anti-monopoly and the multiple of compensation for the victims. Based on the definition and function of punitive damages, the paper proves the punitive damages encourage private participation of anti-monopoly, increase the probability to investigate, punish the monopoly behavior, create a strong deterrent effect, and then compensate for victims more fairly and more sufficiently. At the same time, the paper learns from the practice of anti-monopoly legislation in America and Japan, proves that the punitive damages to the anti-monopoly behavior have a positive impact on the effects of anti-monopoly, and puts forward China´s Anti-monopoly Law should be set punitive damages system.