A Signalling Game Theory Model of Market with Counterfeit Products

A signalling game theory model of market with counterfeit products is constructed in this paper. According to the model, products produced by enterprises which have stronger market power are liable to be counterfeited. From the model, some meaningful inferences suggest that the government should strengthen the punishment on or inspecting of counterfeit products-makers, which is conducive to the withdrawal of counterfeit products-makers from the market.