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Governing Government-Project Owner Relationships in Water Megaprojects: a Concession Game Analysis on Allocation of Control Rights

Author

Listed:
  • Tianyu Ma

    (Hohai University
    University of Maryland)

  • Jiyong Ding

    (Hohai University)

  • Zhuofu Wang

    (Hohai University)

  • Miroslaw J. Skibniewski

    (University of Maryland)

Abstract

Studying megaprojects from the micro-foundations rooted in organizational action and interaction, this research started with an extensive literature review and therefore proposed a conceptual model for governing government-project owner relationships. A cooperative game model was further developed based on the conceptual model and concession game theory. The results showed that the relationships between government and project owner could be indeed improved by considering the allocation of control rights within a certain range (0, A 1 − A 2 + 2 B 2 2 B 1 + 2 B 2 $$ \frac{A_1-{A}_2+2{B}_2}{2{B}_1+2{B}_2} $$ ). Also, it was shown in two cases that project value was increased by over 10% on average when achieving the concession equilibrium, which could bring gains to both the government and project owner by redistributing the added value. This study contributes to existing research on top-level inter-organizational relationships in water megaprojects, provides important implications for maintaining cooperation between megaproject stakeholders, and suggests interesting trajectories for future research.

Suggested Citation

  • Tianyu Ma & Jiyong Ding & Zhuofu Wang & Miroslaw J. Skibniewski, 2020. "Governing Government-Project Owner Relationships in Water Megaprojects: a Concession Game Analysis on Allocation of Control Rights," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 34(13), pages 4003-4018, October.
    • Handle: RePEc:spr:waterr:v:34:y:2020:i:13:d:10.1007_s11269-020-02627-z
    DOI: 10.1007/s11269-020-02627-z
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    References listed on IDEAS

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    Cited by:

    1. Robert A. Greer & Kyungsun Lee & Amanda Fencl & Gretchen Sneegas, 2021. "Public–Private Partnerships in the Water Sector: The Case of Desalination," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 35(11), pages 3497-3511, September.
    2. Wujuan Zhai & Jiyong Ding & Zhuofu Wang & Leijie Ding, 2022. "Performance and Participants’ Decisions Analysis in Major Water Resources Allocation Project Based on Network Governance," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 36(7), pages 2455-2470, May.
    3. Wujuan Zhai & Florence Yean Yng Ling & Jiyong Ding & Zhuofu Wang, 2023. "Impact of Institutional Pressures on Socially Responsible Collective Action Behaviors for Major Water Transfer Projects," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 37(11), pages 4253-4269, September.
    4. Yang Wang & Qingying Li & Jian Zuo & Katharine Bartsch, 2022. "How Did Balance Loss Occur? A Cross-stakeholder Analysis of Risk Misallocation in a Sponge City PPP Project," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 36(13), pages 5225-5240, October.

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