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Research on the Collaborative Mechanism of Value Creation in Public–Private Partnership Projects Under Dynamic Trust

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  • Zehui Bu
  • Jicai Liu
  • Zujie Lu

Abstract

Public–private partnership (PPP) is now focused on project value creation, with trust playing a crucial role. This study models trust evolution among stakeholders using evolutionary game theory and simulations, revealing that higher initial and sustained trust boosts project value. However, overreliance on trust can lead to deregulation and neglect of contracts, harming outcomes. Spillover effects and speculative behavior also threaten value creation. The study identifies an optimal incentive range for reputation gains, highlighting the need for balanced trust mechanisms, effective incentives, and penalties to ensure collaboration and project success.

Suggested Citation

  • Zehui Bu & Jicai Liu & Zujie Lu, 2025. "Research on the Collaborative Mechanism of Value Creation in Public–Private Partnership Projects Under Dynamic Trust," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 46(2), pages 1125-1145, March.
    • Handle: RePEc:wly:mgtdec:v:46:y:2025:i:2:p:1125-1145
    DOI: 10.1002/mde.4424
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    References listed on IDEAS

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    1. Elisa Villani & Luciano Greco & Nelson Phillips, 2017. "Understanding Value Creation in Public-Private Partnerships: A Comparative Case Study," Journal of Management Studies, Wiley Blackwell, vol. 54(6), pages 876-905, September.
    2. Rahel M. Schomaker & Christian Bauer, 2022. "Trust and transaction costs in public–private partnerships—theoretical reflections and empirical findings," Public Money & Management, Taylor & Francis Journals, vol. 42(4), pages 284-290, May.
    3. Bertrand V. Quélin & Ilze Kivleniece & Sergio Lazzarini, 2017. "Public-Private Collaboration, Hybridity and Social Value: Towards New Theoretical Perspectives," Journal of Management Studies, Wiley Blackwell, vol. 54(6), pages 763-792, September.
    4. Huang, Yongchao & Ren, Tianyu & Zheng, Junjun & Liu, Wenyi & Zhang, Mengshu, 2023. "Evolution of cooperation in public goods games with dynamic resource allocation: A fairness preference perspective," Applied Mathematics and Computation, Elsevier, vol. 445(C).
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