THE NASH EQUILIBRIUM ANALYSIS OF DEVELOPING CYCLIC ECONOMY FOR HIGHWAY PRO JECT CONSTRUCTION

摘要

Although both the government and the firms are concerning about the development of cyclic economy for highway projects construction, the conflict of rational choice between the government and the firm appears due to both parties' different interests. This paper introduces the theory of the games of incomplete information to analyze their strategy profile and action. According to the establishment of Nash equilibrium under different conditions, it indicates clearly that the most effective measures to make sure the firms to develop the cyclic economy is that the government should strengthen penalties and increase supervising efficiency as well as provide technology support.