This paper introduces the basic principles and application of game theory, sets up the game model of rural construction land circulation, and analyzes the utility function results under the approval of local government of China, taking Nanhai District of Foshan City as an example. Research result shows that under the current macro-economy and system conditions, the optimal way of rural construction land circulation and expansion in rapidly industrialized area is to realize independent circulation in accordance with laws and regulations without changing the land ownership. The effective approach of regulating and controlling independent circulation is to optimize game structure and the utility functions by implementing demand management of construction land, strengthening land space control, reinforcing the construction of rural land market system, and improving profit distribution mechanism. Finally, we put forward some policy proposals on how to regulate the rural construction land circulation and expansion.


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