Abstract: The game theory can optimize the behavior of contractors and farmers in land circulation in underdeveloped areas. Intermediaries as a recessive factor, together with contractors and farmers, become important factors for economic analysis of land circulation in underdeveloped areas. Using the method of extended dynamic game model between contractors and farmers under the government guidance, we analyzed the behavioral choices of contractors and farmers, and conducted an economic analysis on the behavior of the contractors, farmers and intermediaries. The results showed that contractors’and farmers’behavioral choices through cross acting could obtain the optimal strategy, which was the high price contract and the circulation price of by intermediary intervention, it was verified by putting the game tree transformed into game matrix; the profit maximization confirmed the necessity of high price contracting by contractors and the establishment of intermediaries in underdeveloped areas, the endowment effect of farmers affected farmers’behavioral choices of land circulation. Rural land circulation in underdeveloped areas has a long-term process to recover the profits when the contracts are at high prices, and the long-term cooperation of farmers and intermediaries are needed to achieve tripartite wins. During this process, government guidance is crucial.