Game model of three-party shared risk allocation for PPP projects - -based on the perspective of incomplete information

Abstract

PPP projects involve multi-stakeholders. Rational allocation of risk among project participants is the basis and key to the smooth operation of PPP projects. In the past, most of the studies have only considered the public and private parties, but ignored the bank as the project participant to share the project risk. Therefore, using the bargaining game theory, this paper bulids a bargaining game model in which the three parties (government, enterprise and bank) of PPP project deter each other under incomplete information, and works out the corresponding sub-game refined Nash equilibrium, then obtains the proportion of risk sharing among the three participants. The research results provide a scientific basis for project participants to make decision on risk sharing, which is conducive to improving the willingness of project participants to cooperate, and also play a supplementary role in PPP project risk sharing research.