Game Analysis Of International Project Competitive Bidding

With the rapid development of the global economy, a large scale international project market has gradually formed around the whole world. Regarding the international project, competitive bidding is a general way to choice project contractor in the world. Adopt this way, the owners could find the contractor who is most advantageous to themselves in the international market, that means it is no matter in price and quality aspects, or in time limit and technical aspects could meet the demand better. But, especially in our country, this bidding is immaturity and imperfect so that it implies some factors which is disadvantageous to owners. Therefore, designing a set of scientific and reasonable bidding mechanism for owners is no doubt to have very great practical value and application prospect.This article uses the Game Theory as the theoretical research tool, analysis the game process between owner and bidders during the competitive bidding from the owner's point of view, sets up some game theory models in the light of common problems appeared during the international project competitive bidding. According to the international practice, international project competitive bidding adapt to no base price and wins the tender with the reasonable lowest price. This article bases on the Game Theory, sets up no base price bidding game model, reasonable lowest price bid evaluation game model, rational bidder could not below cost tender game model, the threat strategies after win the tender below cost game model and so on, thus confirming no base price bidding is better than base price bidding and complex base price bidding, reasonable lowest bid evaluation is better than comprehensive mark bid evaluation in the theory. Moreover, this text establishes incentive mechanism, punishment mechanism and supervision mechanism under the mandate relationship between owner and contractors, which promoting bidders to participate tender actively on the one hand, reducing the probability that contractor quality cheat to owner after winning the bid on the other hand. Finally, this article solve Nash equilibrium of second-price sealed bidding, compare second-price sealed bidding with first-price sealed bidding, discuss the popularize value of second-price sealed bidding.The research work in this article aims to provide methods for owners to solution problems appearing from the international project competitive bidding, and offer scientific basis for designing a fair and reasonable competitive bidding mechanism, thus promoting the development of the global construction market steadily and healthily.