The game analysis of participants in the construction project based on asymmetric information theory

Asymmetric information theory is deeply affecting every aspect of market economy and changing many important market concepts, and it has significant influence on the engineering project management. Due to the existence of information asymmetry, a kind of game relationship is formed among the participants in their pursuit of self-interest maximization. The major objective is to apply asymmetric information theory to project risk management and analyze the behavior game among the participants in construction project. The game models between owner and contractor during the phases of bidding and performance are explored, and the equilibrium of the models are analyzed, which indicates that the mechanism of incentive & constraint should be established in order to reduce construction project risk. The authors have established the game models between owner and supervisor, and have analyzed the equilibrium of the model, which indicates that it may enhance the positivity of the supervisor may be enhanced through encouragement and punishment, and the restraint of the supervisor should be constantly enhanced for spurring the supervision to become a self-adaptive system.