Analysis Of Construction Supervision Market In Guangxi And Counter-Measures Of Enterprises: Game Theoretic Perspective

It is very important to implement the construction supervision systembecause it helps to improve the quality of construction, shorten the periodof construction and save the money of construction. After a decade ofdevelopment, the construction supervision system in Guangxi has beengreatly improved and made obvious economical and social effects.Meanwhile, there exists a lot of problems. These problems result from theinformation asymmetry and the induced inefficiency in the constructionmarket.This paper uses game theory and theory of informational economics toinvestigate the construction supervision system in Guangxi. It studies thedevelopment history and current situation of construction supervisionindustry in our country and foreign countries. The existing problems inGuangxi construction market are carefully analyzed from the angle of gametheory. There is serious adverse selection and moral hazard in theconstruction supervision industry in Guangxi, because the constructionsupervision system is not perfect and the signaling mechanism and theincentive mechanism are hurt. It makes the information asymmetry evenworse. Based on this analysis, this paper presents a series of counter measures to reduce information asymmetry. These counter measuresinclude eliminating inappropriate government control, enhancing theincome level of construction supervision enterprises, establishing strictadmittance criteria, regulating the whole construction market and theinvestors' behavior, weakening the obligation of construction supervision,bringing the guild into play, and strengthening self-construction ofconstruction supervision enterprises, etc. These opinions and advices basedon reliable economical analysis and link to the reality tightly. They can beapplied to the reform and development of construction supervision industryin Guangxi.