The Research On The Applications Of Game Theory In The Tendering And Bidding Of BOT Projects

BOT (Build-Operate-Transfer) is a pattern on the financing and projectmanagement of infrastructure construction recently in the world. It is a new pattern onmaking use of the foreign capital and private capital to build infrastructures, and it isup-and-coming. How to constitute appropriate tender strategies is the key to whether abidder will win the BOT contract in a bidding competition or not. It is stronglyrealistic that a bidder manages tender strategies effectively and constitutes the besttender so as to win the BOT contract and obtain profits. Chinese government andChinese contractors should pay attention to the matters that how to use the experienceabout the bidding and tendering of international BOT projects for reference, and howto carry on the further innovation in accordance with the state of China.This article studies the matter of equilibrium in the bidding competition andcommercial negotiation by taking two key links─bidding competition and commercialnegotiation as models, combined with implementation of real BOT projects. At first, itapplies ideal dot theory and establishes a tender model of BOT project according tothe evaluated bid traits of BOT projects, which considers synthetically the influencingfactors such as financing scheme, operation scheme, investment scheme etc. A biddercan analyze and judge the evaluated bid criterions reasonably in order to choose themost rational decision. Then, it establishes a signaling game model between the hostgovernment and the bidders, discussing several typical evaluated bid criterions suchas equity capital, reasonable low pricing, rate of return on investment, contractualfines and so on. At last, it establishes the post-bid negotiation model, analyzingespecially relevant actions of the government and the bidder when the BOT projectstands in an adverse situation. This model may assist the bidder to make validdecisions in the negotiation process of the BOT project. At the same time, the modelcan provide host governments a new jumping-off place on the general equilibriummanagement and the policy-making of BOT projects.This article refers to a large number of literature and information about thetendering and bidding of BOT projects. The article analyzes the main factors affectingthe tender strategies and the negotiation strategies from the view of the game theory,thinking that the bidder should base his or her tender strategies on "TYPE" to reflectthe principle of justice and openness, urging Chinese contractors to pay muchattention to develop their competitive advantages, which has realistic and instructionalmeanings.