Research On Interest Compensation Of PPP Projects In Renegotiation

In recent years,with the rapid development of China's urbanization.The PPP model is highly valued by the government and society.It serves as a means to resolve government financial pressures and a new way for social capital to participate in infrastructure investment.Because the PPP project is relatively large in scale,the operating cycle is long,and the contract itself is incomplete,if a contract is not agreed or the contract is unreasonable during the operation of the project,a participant will initiate renegotiation.This paper analyzes the renegotiation process through game theory,and intends to explore the game results under different conditions in the PPP project renegotiation game.And through the construction of the interest compensation model,a fair and reasonable interest compensation plan is formulated,thereby reducing the loss of negotiation and avoiding the rupture of re-negotiation.It provides reference for the public sector to determine the compensation scheme for the private sector in the renegotiation,thus promoting the scientific renegotiation of PPP projects.First of all,this paper summarizes the current research progress on renegotiation at home and abroad and puts forward the research issues by elaborating the current situation and background.Then select the research method and determine the technical route.After defining the concepts of renegotiation and benefit compensation,this paper analyzes the trigger factors and initiation of renegotiation based on public goods theory,stakeholder theory and incomplete contract theory.By exploring the stakeholders in PPP project renegotiation,the paper discusses the interest orientation,status difference and cooperation basis of core stakeholders.Secondly,based on the dynamic game model and considering the opportunistic behavior of the private sector,the paper analyzes the two stages of renegotiation before and after renegotiation respectively,and obtains the strategies selected by the participants under different conditions and the final game results.Thirdly,based on the game analysis of renegotiation,based on the classical Shapley value model,the investment proportion,contract execution degree and risk allocation factor are used to modify.Considering the negotiation cost and arbitration cost,the improved Shapley value model is used to construct the benefit compensation model.Determine a fair and reasonable compensation plan that not only prevents opportunism,but also reasonably considers the benefits of the private sector.Finally,the actual case is applied and the results are analyzed.Reasonable renegotiation can make up the incompleteness of contract and promote pareto improvement.Fair and reasonable benefit compensation is the key factor that affects the success of renegotiation.Therefore,the strategy and stable solution that the participants may adopt under various conditions are analyzed through the game,and the fair and reasonable benefit compensation scheme is determined.In this way,opportunism can be prevented from happening,renegotiation cost can be reduced,the breakdown of renegotiation can be avoided,the initiative of participants can be mobilized,and the normal operation of PPP projects can be guaranteed.