The PPP Project Renegotiation Analysis Based on the Asymmetric Game Model

Public-private partnership (PPP) model has become an important solution of governments to provide infrastructures. In the execution of the PPP projects contracts, however, inevitably to renegotiate, which might affect the execution efficiency of PPP contracts. This paper built two PPP projects renegotiation bargaining game models of the private sectors and public sectors respectively through the analysis of the PPP projects renegotiation process, drawing the conclusion of the risks proportion shared by each party according to corresponding sub-game refining Nash Equilibrium. On the basis of that, we proposed to look into the motivation of the renegotiate initiator, intensify supervision of the PPP projects operating period and strengthen organizational capacity for renegotiation, which will promote the sound development of the PPP projects.