Study Of The Price Compensation In The PPP Projects Of Urban Rail Transit Based On The Bargaining Game Of Incomplete Information

Public-private Partnership(PPP)is a kind of investment and financing mode for the government and the Private sector to provide infrastructure services.This model is not only more effectively make up for government funding shortages,also makes infrastructure get more widespread application in many countries.However,because the PPP project financing has a huge complex long payback period of investment,and a great deal of uncertainty factors,so the risk of the project is higher.The PPP may not achieve the expected earnings and even will suffer great losses,resulting in renegotiating compensation problem of the project between the government and the private sector.The problems of the government compensation to negotiate PPP project has become a hot issue in the field of project management.The problem of the government compensation is a fundamental problem of core interests when the two sides have suffered losses to negotiate.Price compensation mechanism can not only for the government to make up for the shortage of funds,but also can make up for the loss of the private sector,So the price compensation mechanism is a more efficient,lower government cost compensation mechanism.Therefore,how to establish scientific price compensation mechanism become a problem that the theoretical and practical circles need to solve.First of all,in this paper,the related research of PPP in urban rail transit project of government compensation and bargaining game theory was summarized and reviewed.The study also illustrated the conceptual framework of the urban rail transit and the PPP mode,and explained the bargaining game.On this basis,it carded domestic and foreign relevant theory and research literature,and classified the different ideas of relevant scholars about the compensation of project.It laid the foundation for the modeling work by combing these theories in this paper.Secondly,this research analyzes PPP project of urban rail transit when the operation cost of the government and private sector information asymmetry,and establishs the PPP project price compensation model based on the incomplete information bargaining game theory.Finally,an urban rail transit of the PPP project——Beijing subway Line 4,was taken as an example to validate the applicability of game model of incomplete information bargaining price compensation.The Nash equilibrium result of the example was discussed and analyzed,finding the compensation model is suitable for the price of compensation.Then the study analyzes the results of numerical examples for the sensitivity and found that some factors of this model will have a great impact on the result of the price compensation.When the government has incomplete information,the price compensation mechanism can effectively determine price compensation scope,and make up for the inadequacy of price compensation theory under the condition of asymmetric information.Moreover,The research is intended to guide the government more effectively compensate for loss of the private sector to ensure the sustainable operation of the PPP project in practice.