International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

Game Theory Analysis of Bidding Rigging under Different Bidding Rules for Construction Projects
XiaoLi Wei, Yihua Wei

With the actual situation of bidding rigging in engineering construction areas, this article analyze the motivation of bidding rigging and use the game theory to discuss the possibility of the bidding rigging under different bidding rules; thus suggest the lowest price bid for simple construction projects and lower price bid+ comprehensive evaluation bid for complicated engineering cases. Finally, this article give suggests that establishing the credit evaluation mechanism, strengthening the information disclosure, introducing bidding supervision and report incentive mechanism can help to reduce the bidding riggings. From the angle of multi-period dynamic game theory, it also help to weaken the preference of bidding rigging and reverse the social atmosphere so that bidding system can play better for the role of effective allocation of social resources.

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