Research On The Disputes Of International Engineering Contracts Based On Game Theory

With the implementation of “Going out” Strategies,“One Belt One Road Initiative”,The number of international projects contracted by Chinese enterprises is increasing year by year.The proportion of contracted projects in the international market is increasing continuously.Due to the characteristics of international engineering,such as long period,heavy capital and wide coverage,the international engineering disputes of Chinese construction enterprises have increased year by year in recent years.This paper mainly studies that the contractor and the owner can’t reach an agreement on the disputes arising from contract and cost in international engineering,and need to settle the disputes through friendly negotiation,arbitration and litigation.Based on this,this paper analyzes the process of bargaining between the contractor and the owner about the rationality of claims.Based on Rubinstein’s bargaining game theory,this paper firstly regards friendly negotiation process as a bargaining game process,and builds a bargaining model between the contractor and the owner,and adds discount factor to the bargaining model to analyze the dispute settlement mechanism through friendly negotiation;secondly,analyzes the breaking point of the negotiation between the contractor and the owner;finally,arbitration is regarded as the external choice of bargaining,and arbitration is compared with friendly negotiation to determine the influence of arbitration on disputes settlement mechanism.On this basis,the above model is further verified through the form of a real case.From the domestic contractor’s point of view,the bargaining game theory has a certain guiding significance for the reasonable settlement of contract disputes,improving the management level and strength of international project contracting,reducing the losses in the process of project,and protecting the maximization of self-interest.For the engineering industries and the country,the application and popularization of game theory had better to reduce the loss of overseas direct investment infrastructure projects and reduce the risk of huge losses of projects.At the same time,the application of game theory in international engineering is also conducive to the cross-complementarity between disciplines.