Study on Application of Game Theory to Tax Levy and Administration of Head - Branch Organization

With the development of market economy, more and more enterprises set up branch organization outside the head organization in order to expand operation and strengthen competition ability. But the operation model of head-branch organization is a complex participating system. This increased the difficulty of its tax levy and administration. So, basing on the visual angle of game theory, this paper analyzed the behavior of levy and ratepaying as well as their game relationship existing in tax levy and administration of head-branch organization from the aspect of levy and administration part along with taxpayer part emphatically. Furthermore, this paper put forward specific tentative plans to improve them, which are perfecting the game rules, accelerating the construction of information network, enlarging the force of supervision, establishing stimulation and restraint mechanism, strengthening the guarantee system.