Research On Public-Private Cooperation Mechanism Of PPP Project Based On Fairness Preference

As an innovative way of infrastructures and public services supply,PPP model effectively promotes urban economic development through equal cooperation and complementary advantages between the government and the private sector.However,due to the inconsistency of goals between the government and the private sector in PPP projects,there are moral hazards.The private sector may adopt opportunistic behavior for economic interests,which will lead to the failure of the project and harm the interests of the public.Therefore,this paper focuses on the opportunistic behavior of the private sector,from the perspective of fairness preference,and analyzes how to promote cooperation between the government and the private sector from the perspective of incentive mechanism and cooperative evolution.Firstly,the paper introduces the relevant theories of PPP mode,principal-agent,evolutionary game,system dynamics and fairness preference,which lays a theoretical foundation for the follow-up study of PPP project public-private cooperation mechanism;Secondly,the paper defines the government and the private sector as the two main players in the PPP project and combing the rights and responsibilities of both parties in the PPP project,focusing on the opportunistic behavior of the private sector in the PPP project and the incentive and supervision behavior of the government sector,providing research support for the following empirical part;Then,Based on the principal-agent relationship between the government and the private sector in the PPP project,the incentive model of the private sector with fair preference is constructed and analyzes the incentive mechanism of the private sector of PPP projects with fair preference from a static perspective;Finally,since the government department is not only the partner of the PPP project,but also the regulator.This paper constructs the evolutionary game model of the government and the private sector from the perspective of the fairness of the private sector,and analyzes the impact of the private sector’s fairness preference on the choice of cooperation strategies from a dynamic perspective,and use the system dynamics software to simulate the dynamic selection process of the cooperative strategy.It is concluded that the increase of incentive intensity of government departments can reduce the opportunistic behavior of the private sector.At the same time,through the analysis of static and dynamic perspectives,it is found that the fairness preference of the private sector is conducive to reducing its opportunistic behavior,but the fairness preference is not as high as possible,nor is it as low as possible,but should be controlled within a reasonable level.The research results of this paper supplement the research on the incentive mechanism of PPP project,enrich the research on the application of fairness preference theory,and provide reference for the government departments in the operation of PPP projects.