Study Of Pricing Mechanism In Public Project (PPP)Based On The Third-party Audit Institutions

Public-private partnership project services pricing issue is a crucial issue of public projects of the PPP model. In the natural monopoly, the main objective of pricing and price regulation is to maximize social welfare, while improving the service efficiency of public projects and maintain the enthusiasm of private investment.This passage pointed out the problems of the current pricing mechanisms of China’s public programs, and with the help of the systems engineering approach to analyze the complexity of pricing system of the PPP project, pointing out the general framework and the general process of third-party pricing organizations in the governance structure of a typical PPP project. Besides, the passage uses the repeated game agent model to describe the formation and evolution of third-party pricing mechanism, and uses computational experiments to simulate the behaviors of operators and third-party auditor and analyze and discuss the results under the four scenarios to explain influences of the auditor’s efforts, punishment earnings, auditing cycle and other factors in the design of third-party mechanism. At last, the passage proved that to the third-party pricing mechanism performs better to keep both public government and private investor long-term partnership to maximize the public benefits.