Shadow economy is affecting economic behavior of human beings in almost the same mode as mainstream economy, yet it is difficult to evaluate in same economic mode and it has heavy impact on the regulation of a government. Gaming is one of the most possible shadow economic activities. The regulation of government over gaming is in one way in paternalism, telling its subjects that gaming is not a good behavior and gambling is forbidden. But on the other way, in the name of social welfare, the government is playing as banker and make it public to promote. The conflict and contradiction are generated in different systems. Taking the overseas successful development of the gaming policy and studying and discussing the provisions governing the gaming and entertainment of tourist casinos, the government has gone through years of debates. Although it allows the off-shore areas to develop gaming industry, the gaming industry areas will be allowed to run only on condition that they pass the referendum. However, there are a lot of counties and cities in Taiwan also bent on gaining the benefit of gaming industry and actively striving to set up tourist casinos. Bound by the institution and the subjective values of different stakeholders, resulting in differences in cognition and leading to conflict, the government is still wavering between regulation and deregulation. This study combines th institutional analysis and development with the cross-border analysis of the public affairs management framework, exploring and analyzing the institution and condition of gaming governance. Besides, from the angle of cognition, take the regulation and deregulation of tourist casinos of Kaohsiung city to question a number of people as a variable, also to explore the government employees, policemen and city people of different interests, asking them what they think about the benefit and cost of different gaming policies, including their information, cognitive algebra confirmation and the social welfare standard of the system. Moreover, use three strategic decisions such as economic industry, social culture, and the facilities of environment as reference to explore the cognitive conflicts of different interest groups. The results of this study are as follows: I. Cognitive algebra confirmation. i. With regard to the regulated tourist casinos situation, the city government employees use equal-weight averaging model to integrate benefit and cost information in whole analysis, and with regard to the deregulated tourist casinos situation, they use different-weight averaging model to integrate information in whole analysis. ii. With regard to the regulated and deregulated tourist casinos situation, policemen use unequal right and weight average model to integrate benefit and cost information in whole analysis. iii. With regard to the regulated and deregulated tourist casinos situation, city people use equal right and weight average model to integrate information. iv. When city government employees compare the right and weight of the deregulated tourist casinos situation, the right and weight of benefit are greater than those of cost. v. When policemen compare the right and weight of the regulated and deregulated tourist casinos situation, the right and weight of benefit are greater than those of cost. II. Social welfare standard. i. With regard to the social welfare standard of the regulated tourist casinos situation, city people have the highestr social benefit standard, then city government employees, and policemen are the lowest. There are noticeable differences between policemen and city people. ii. With regard to the social welfare standard of the deregulated tourist casinos situation, policemen have the highest social welfare standard, then the city government employees, and city people are the lowest. However, there is little noticeable difference among the three groups. iii. With regard to the social welfare standard of the deregulated tourist casinos situation, the three groups have higher standard than that of the regulated one. III. Clarification of cognitive conflict. i. Three variables such as economic industry, social culture, and the facilities of environment are useful variables for exploring the effective strategic decisions of the regulated or deregulated tourist casinos situation ii. In the judgment in the regulated tourist casinos situation, the priority order of the relative right and weight of three variables such as economic industry, social culture, and the facilities of environment is as follows: with city government employees: the highest is social culture; then comes the economic industry, the lowest is the facilities of environment; with policemen, the highest is social culture, then economic industry, and the lowest is the facilities of environment; with city people, the highest is economic industry, then social culture, and the lowest is the facilities of environment. iii. In the judgment in the deregulated tourist casinos situation, the priority order of the relative right and weight of three variables such as economic industry, social culture and the facilities of environment is as follows: with city government employees , the highest is economic industry, then social culture, and the lowest is the facilities of environment: with policemen, the highest is social culture, then economic industry and the lowest is the facilities of environment: with city people, the highest is economic industry, then social culture, and the lowest is the facilities of environment. iv. Three variables as reference for strategic decisions such as economic industry, social culture, and the facilities of environment are all related to the acceptable judgment of the regulated or deregulated tourist casinos situation.

According to the literature on the subject and PAM framework (Ming-shen Wang, 2006), the cognition of the citizen of Kaohsiung in Kaohsiung development and direct cross- strait link could be influenced by three factors: the factor of economic development, the factor of social development, the factor of political development. The study applied category estimation and information integration theory (Anderson, 1996) to treat the citizen of Kaohsiung' s cognition structure, integration function, cognitive algebra, estimate etc. in Kaohsiung development and direct cross- strait link. The main research method in this study is information integration theory. It can figure the internal process of how individuals deal with a series of variables out, including valuation function, integration function and response function. And integration function is the key of information integration theory. Many researches of information integration theory mentioned that people always make use of simple cognitive algebra to integrate information, as adding rule, multiplying rule and averaging rule. The research result in this study is shown as below: 1. Although the middle and bottom classes in Kaohsiung considered that if opening direct cross- strait link, it can make economic development better, most people thought that it could make social development and political development worse. So they tend to oppose direct cross- strait link. 2. Most white-collar classes in Kaohsiung (including industrial circle, political circle, academic circle, grass-roots circle and mass media circle) considered that if opening direct cross- strait link, it can make economic development, social development and political development better. So they tend to assist direct cross- strait link. 3. In group analysis, the information integration of the industrial circle in " acceptive situation of Kaohsiung development" is different-weight averaging model. They pay much attention to economic development. 4. In group analysis, the information integration of the political circle in " acceptive situation of Kaohsiung development" is different-weight averaging model. They pay much attention to economic development. 5. In group analysis, the information integration of the academic circle in " acceptive situation of Kaohsiung development" is different-weight averaging model. They pay much attention to economic development. 6. In group analysis, the information integration of the grass-roots circle in " acceptive situation of Kaohsiung development" is different-weight averaging model. They pay much attention to social development. 7. In group analysis, the information integration of the mass media circle in " acceptive situation of Kaohsiung development" is different-weight averaging model. They pay much attention to economic development. 8. In individual analysis, 60% people pay much attention to economic development, 22% people pay much attention to social development, and 18% people pay much attention to political development.