An Analysis Based on Game Theory about the Complicity between Contractor and Supervisor in the Construction Claims
Zeping Tong
Abstract
Zeping Tong
Abstract
Based on the game theory, the paper discusses the collusion between contractor and supervisor in construction claims. By creating a three-person game model, the paper analyzes the strategies of the entire three partners. There is no pure strategy Nash equilibrium, so they should select their strategies by chance according mixed strategy Nash equilibrium. Furthermore, the paper suggests government how to reduce the likelihood of collusion.
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Based on the game theory, the paper discusses the collusion between contractor and supervisor in construction claims. By creating a three-person game model, the paper analyzes the strategies of the entire three partners. There is no pure strategy Nash equilibrium, so they should select their strategies by chance according mixed strategy Nash equilibrium. Furthermore, the paper suggests government how to reduce the likelihood of collusion.
Key concepts: Collusion, Nash equilibrium, Game theory, Supervisor, Complicity, Government (linguistics), Strategy, Non-cooperative game