Study On Government Incentive Mechanism Of Prefabricated Buildings Based On Principal-agent Theory

The prefabricated building has become an important way to transform and upgrade the construction industry,which meets the requirement of rapid development of construction industry in the process of urbanization.It has a lot of advantages,such as energy conservation,emission reduction and short construction period,making up for the high energy consumption,heavy pollution and low efficiency of the traditional construction industry.However,the development of prefabricated buildings in China is still in the primary stage compared with developed countries.The small scale,high incremental cost and low market acceptance have become important factors restricting the development of prefabricated buildings in China.The government needs to establish a long-term incentive mechanism to regulate and guide the behavior of market players in the complex market environment,promoting the development of prefabricated buildings.This paper uses Game Theory,Information Economics,Optimization Theory and Multitask Principal-Agent Theory to builds incentive mechanism model based on the game between the government and the construction unit for dealing with the information asymmetry and conflict of interest in the construction market.This paper reviews the development of prefabricated buildings in China,summarizing the relevant incentive policies of developed countries.Firstly,it analyzes domestic financial policies of prefabricated buildings,which shows the government plays a positive role in promoting the application of prefabricated buildings.Then,the paper analyzes the reason for the slow development of prefabricated construction from the perspective of information economics,which also shows the important role of government in the key period of construction industry transformation.Secondly,it defines the scope of participants in China's construction market,analyzing the economic behavior of participants on the basis of rational-economic man and establishing the evolutionary game model between government and construction units.Finally,this paper establishes the principal-agent model based on multi-party and multi-task of government,consumer and construction unit,which also introducing relevant consumers into incentive mechanism model to give some suggestions from many aspects for the government to encourage the market participants and provide the subsidy policy of prefabricated building.This paper draws on the successful practices of developed countries in guiding the private sector into the construction field and promoting the industrialization of construction,formulating government incentives on the basis of ensuring common interests to promote the healthy development of domestic construction industry.