A Study On The Interests Coordination Between The Two Sides For PPP Projects Based On Game Theory

PPP(Public-Private Partnership)is an important model in which the government cooperates with the social capital sector to provide goods or service.The PPP model has developed very quickly in our country and has got a lot of achievements for several years before,with exposed a lot of problems.With the backgrounds of projects bidding and concession contract negotiation,this article puts emphasis on how to coordinate benefit relations between the government and social capital sector.Detailed introductions of PPP theory,game theory and stakeholder theory are made and reviews of the main research results are made as well.Through reviewing the current academic achievements,it is pointed that both price and concession term are all important factors that affecting the social capital sector's future benefits,so price and concession term should not be considered separately.At the tender stage,the government should design the bidding contract under which the social capital sector would report its real type.Then the government can choose the social capital sector with high ability.A decision-making model on price and concession period for a PPP project is established.By solving the model,it is proved that there exists an optimal decision-making mechanism on price and concession period in a PPP project,under which the social welfare will be maximized and the government will be able to select the most competent concessionaire.Several suggestions are provided.Secondly,discussions of the effect of bargaining cost on the residual control rights allocation of a PPP project are made.A bargaining model is established to figure out the optimal allocation proportion for the government and social capital in an equilibrium.The further analysis on the optimal solution indicates that the actual allocation proportion is only related to the bargaining cost,rather than the asymmetric dominant status of the both sides and that the first bidder will have the first-mover advantage.Lastly,the article comes up with several suggestions to coordinate the benefits relations between government and social capital sector.