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Evolutionary game analysis on decision-making behaviors of participants in mega projects

Economics

Evolutionary game analysis on decision-making behaviors of participants in mega projects

D. Chen and B. Chen

Discover how collusive behavior in mega-projects can be analyzed through the lens of evolutionary game theory. This research explores the dynamics between owners, constructors, supervisors, the government, and the public, revealing essential strategies for improved governance. Learn from the insights shared by Daoping Chen and Binbin Chen.

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~3 min • Beginner • English
Abstract
Mega projects have a huge impact on the economy and society. Preventing collusive behavior and introducing public participation in supervision are conducive to the governance of mega projects and are crucial to their success. The owner, the construction party, and the supervisor are regarded as a potential collusion-body. Based on evolutionary game theory, the paper constructs an evolutionary game model with a collusion-body, the government, and the public as participants. The stability of each participant's strategy selection is analyzed, the conditions for evolutionarily stable strategies (ESS) are obtained, and the evolutionary paths are simulated. Results show costs and benefits strongly affect all three participants. Each participant's strategy is influenced by the others, with critical probabilities at which strategy choices switch. There are five ESS in the system, each under different cost–benefit conditions. With active government intervention and public supervision, an ideal stabilization strategy can be achieved by adjusting participants’ costs and benefits, improving governance effectiveness against collusion in mega projects.
Publisher
Humanities and Social Sciences Communications
Published On
Dec 07, 2023
Authors
Daoping Chen, Binbin Chen
Tags
collusion
evolutionary game theory
mega-projects
governance
government intervention
public participation
strategy
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