Government plays an important role in the formation and development of the home care model. In this paper, we study how the supervision of government in the pension service system based on insurance policy affects the members of the system. First of all, taking into account whether the government as the leader of the Steinberg Game, we establish a no government led model N and a government led model S to describe the characteristics of the pension service system under government supervision. Then, we analyze the impact of government participation in the pension system from the perspective of the elderly, insurance companies, pension companies, and the size of pension industry. The equilibrium results of the models show that the members of different role benefit different from the government's supervision. And the supervision of government is conducive to all elderly people’s benefiting from the subsidy policy and expanding the scale of the pension industry. Both insurance companies and pension companies are the beneficiaries of the supervision of government.
Home-based Care; Supervision; Insurance; Industrial scale
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