Study on the Game Mechanism of Construction Project Bidding

Abstract

Construction project bidding is a kind of transaction way of construction project the most widely used ,the bidding is a closed price auction, the game among the bidders and the tenders belongs to a kind of non-cooperation and incomplete static game and so does it among the tenders. According to the special rules of bidding, the game theory is put into construction project bidding ,the game model of bidding mechanism is set up, the game process of a non-cooperation and incomplete information static is analyzed among the tenders according with the different strategies of tendering price, the conclusion can be drawn to be applied to construction project bidding , which can realize “the incentive and compatibility constraints ” and “personal participating in constraints”. Meanwhile, the moral hazard and the adverse selection can be avoided. At last, the great degree of equilibrium and the PARETO optimization can be achieved.