Analysis of Principla-Agent Relationship among the Parties in Construction Projects Based on Mized Strategy Game
According to the principal-agent theory, as the objective of the agent is inconsistent with that of the pricipal, the agent is likely to take actions deviate from the principal’s objective and even do harm to the principal’s interests. In construction projects, the owner authorizes the contractor to complete a certain construction project, which forms a principal-agent relationship. Due to the asymmetic information, the owner hires the engineer to control the performance of the contractor, which constitutes another principal-agent relationship. Thus, as the principal in these two principala-agent relationship, an understanding of strategic interaction of the contractor and the engineer is extremely important to the owner. Game theory is a field of applied mathematics which focus on analyzing conflicts in many academic disciplines. It provides a analytical tool to predict the equilibrium of complex situations involving two or more players who strategically interact to maximize their own interests. In this paper, game theory has been introduced to analyze the strategic interaction among the parties in construction projects and two mixed strategy Nash equilibrims have been concluded.
principal-agent relationship game analysis mized strategy Nash equlibrium construction project
LIU Yiqun WANG Yaowu
Department of Construction and Real Estate,Harbin Institute of Technology, Harbin, China 150001 Department of Construction and Real Estate, Harbin Institute of Technology, Harbin, China 150001
国际会议
2009 International Conference on Construction & Real Estate Management(2009建设与房地产管理国际会议)
北京
英文
288-291
2009-11-05（万方平台首次上网日期，不代表论文的发表时间）