Dynamic Pricing Of Public Goods Under Public-Private Partnerships Scheme

In the field of infrastructure,the PPP(Public-Private-Partnerships)delivery mode is booming,and many projects,such as highway projects,use this mode for construction and operation.In the PPP mode,contracts are signed between the government and the private sector to settle down various terms,including the pricing of PPP project products and the determination of the concession period for the project.The relationship between the government and the private sector is complex.In addition to the cooperative relationship,they have different concerns for the pricing of project products.The government mainly focuses on social welfare,and its goal is to maximize public welfare.Under this goal,the price of the product will be too high;while the private sector will pay attention to the company's revenue,and its goal is to maximize the company's profits.Driven by different goals,the pricing of PPP project products cannot be as simple as other public products.Based on the characteristics of PPP project products,this research is aimed at developing a bi-level programming model to address the pricing problem of PPP project products.In this model,the upper level is formulating government behavior.The objective function is to maximize social welfare,and the constraint is the government's corresponding regulation;the lower layer is formulating the private sector behavior,and the dynamic pricing strategy is adopted here,whose objective function is to maximize the revenue.Through the bi-level model,government regulation and revenue management are combined to achieve a win-win situation for social public welfare and private company revenue while considering the interaction between the government and the private sector.Under the bi-level pricing framework,specific problems such as stochastic problems(such as coal gasification projects),deterministic problems(such as electric power projects),and infinite quantities of products(such as highway projects)will be specifically modeling and the optimal condition will be discussed further.Hope the research would provide some directions and insights for the research of dynamic pricing of public products under the bi-level programming model.