Research on Economic Cooperation between Local Governments Based on Repeated Game

With the rapid development of regional economic integration, cooperation between local governments has become the irreversible trend. However, because of the restriction of the governmental tenure system and "GDP-oriented" achievement check-up system, it is no doubt that economic cooperation between local governments is inclined to plunge local governments into prisoner's dilemma. The article mainly analyzes the mechanics which causes difficulties of local governments cooperation. Besides, it applies repeated game theory to explore difficulties of local governments' cooperation and find out effective measures: external forces such as policy and financial support as well as promotion preference must be used. Only in this way, can cooperation between local governments be carried out effectively to boost the stable development of regional economy integration,