The Game Theory Analysis On Bidder Horizontal Collusion Of Construction Project

Since the bidding law of the People's Republic of China promulgated nearly twenty years ago,it promoted the improvement of the system of engineering construction project bidding,and provided a legal basis for open,fair and just market trading environment of construction project.But with intense competition of construction market,and combined with many problems in the engineering construction project bidding and tendering,such as information asymmetry,imperfect laws and regulations,no unified power and responsibility of regulatory,the trend of bidders through transverse collusion to seek more profits is escalating,which hinders the further development of construction industry in our country.Firstly,based on the description of related research about the auction collusion,collusion behavior in the field of construction and collusion behavior revealing,engineering construction project tendering and bidding theory,collusion theory and game theory are elaborated as the theoretical basis.Secondly,considering the bidder's relationship with other participants,three forms of horizontal collusion are summarized,i.e.,bidder community of interests,bidder rigging and bidder accompanying,bidders monopoly.And specific behaviors of horizontal collusion are further analyzed.Thirdly,from the perspective of short-term prevention,and focused on analysis of the formation conditions of horizontal collusion,Shapley value game model is established to study the single-stage collusion behavior.And from the perspective of long-term prevention,and focused on the analysis of evolution game,replicator dynamics analysis is employed to study the strategy evolution trend of the bidders.So control idea of short term and long term horizontal collusion are proposed.On the basis of short term and long term control idea,five aspects control countermeasure are put forward as follow:perfecting the system of laws and regulations,strengthening the supervision of regulatory system and increasing the intensity of punishment,improving the lateral conspiracy of transaction cost,establishing the mechanism of the reputation of the bidder,constructing an effective incentive mechanism,which can be the reference for the tender and relative government departments.