Research On Stakeholder's Revenue Distribution Of Public-Private Partnership Project Based On Game Theory

PPP (Public-Private Partnerships) Model is developing rapidly in recent years and has become a new project financing model favoured by governments of all countries, where there are already successful cases. This financing model can not only broaden the financing channel of the government and alleviates the financial pressure, but also make use of the advanced technology and management model of private-owned departments, thus enhancing the project efficiency substantially. However, public and private departments have different purposes in the course of their cooperation. Public departments hope to solve their fund problem by taking advantage of the capital, while private departments hope to gain great returns on the investment. Revenue sharing has become the central issue of the two sides. Whether the revenue can be distributed rationally is the key to the smooth implementation of the PPP project.On the basis of a great number of reference materials, the thesis probes into the financing model of the PPP project, analyzes the substantive characteristics of the model and makes research on stakeholders. A new revenue distribution model is put forward through studying the relationship between project stakeholders and the factors affecting profit distribution. The game theory is introduced in the new revenue distribution model, which studies revenue distribution in the following two cases: cooperative and non-cooperative game. In the case of non-cooperative game, the optimum endeavor of the project participants and the optimum revenue distribution plan are achieved. In addition, a series of encouraging and punishing systems are designed so as to enhance the efficiency of revenue distribution through rules and regulations. In the case of cooperative game, the Nash Negotiation model is adopted, and all the parameters of the model are studied in depth. The investment proportion, the core capability and the allocation of risks among the project participants are considered comprehensively, so that the revenue distribution plan, with which all the participants are satisfied, is achieved.The study on revenue distribution is a crucial link in the effective implementation of the project. The study enriches the theory of revenue distribution for PPP projects and substantially enhances the operation efficiency of the project. The research findings can help to rationally allocate the project profit, which motivates both the public and private sides to participate in the project, and have a positive side in promoting the economic development and enhancing the people's living standard.