Research On The Tripartite Game And The Incentive And Restraint Mechanism Of Hebei Highway Construction

The highway construction of Hebei Province, is a major force to promote economic development of Hebei, to improve the overall level of highway construction largely depends on whether the construction of three parties (owner, contractor, and supervision units) are able to coordinate and cooperate fully. The highway constructions take a long time, big investment and wide coverage. This has brought great challenge to the management and cooperation of the three parties. This paper has analyzed the behavior of the tripartite game, has used principal-agent model to establish incentive and constraints model of the construction period, quality and investment, and has explained which behavior the three parties take could improve the overall level of highway construction, promote cooperation between three parties, achieve three-win.Firstly,through Interviews and surveys the paper finds out what problems the three parties encountered in project cooperation, and points that the source of principal-agent problem between owners and contractors, owner and supervisor is information asymmetry between the two sides. Secondly,this paper analyzes the information asymmetry problem between owner and supervisor, owner and the contractor, establishes the game theory model of owner and supervisor, owner and the contractor, the three parties, analyzes the behavioral decision, proposes measures and recommendations for the management of highway construction. Finally,this paper establishes incentives and constraints model of construction period, quality and investment for owners, points out that the owner can set the coefficient of incentives and penalties, to influence the behavior of the contractor and supervision, and control of the construction period, quality and investment.