Mechanism Design of Investment Compensation on Public WelfareHydraulic Engineering Based on Game Theory

摘要

The paper studies the game behaviors in public welfare hydraulic engineering and analyzes the investor' s investment decision — making. It proves that the government could induce investors' behaviors by tuning investment compensation ratio and made investors' investment decision — making be satisfied with Nash equilibrium under the optimized investment compensation ratio a (0 < a:≤1). The result shows that a basic entrance standard should be established to ensure the participants are competitive ; when there are 2 competitive participants in the project after bidding, the expected investment equilibrium will achieve an economized total compensation cost and reduce social welfare loss. The paper provides a basis of mechanism design about fiscal compensation on public welfare hydraulic engineering.