The Strategy of Constructing Elder-Friendly Communities Using Differential Game

This study constructs a three-party stochastic differential game model consisting of the government, project contractors, and elderly residents, based on benefit distribution and coordination equilibrium.It quantitatively solves the optimal strategy for the construction of elder-friendly communities, and qualitative solutions for three different models were computed: non-cooperative model, subsidised cooperative model, and threeparty cooperative model.From our results, we can conclude that 1) government subsidies are an effective incentive to increase the optimal effort of project contractors and elderly residents and thus increase the quality and efficiency of elder-friendly retrofitting.2) compared with the non-cooperative model and the subsidised cooperative model, the optimal benefits of each subject, the total system benefits, and the quality and efficiency of elderfriendly community construction are maximised under the three-party cooperative model when the Pareto Improvement is the greatest.3) Higher benefits come with more significant risks, and the variance increases as the total system benefits and the quality of Elder-friendly retrofitting increase.