Research on Risk Sharing of Construction Waste Recycling PPP Project Based on Game Theory

At present the disposal of construction waste in our country is extensive and backward, causing serious challenges to resource and environment. Construction waste recycling can reverse the harsh situation, and using the PPP model can effectively solve the fiscal problem, raise operation efficiency and reduce the project risk. In the process of construction waste utilization PPP project operation, establishing scientific and perfect risk sharing mechanism is the key to project success. In this paper, the stakeholders and their relationships in the construction waste comprehensive utilization PPP project were analyzed, and divided into three parts: government sector, pure investor and specialized company. The game processes is divided into stages of incomplete information and complete information, constructed into the two-phase tripartite bargaining game model in an asymmetry position, which provides a more effective solution for risk allocation, and the empirical analysis for the model was carried through a case, which constructs a complete risk set for construction waste recycling PPP project and determines rational allocation of risks to the three parties. The corresponding refined bayesian Nash equilibrium solution and the subgame refined Nash equilibrium solution are established and the proportion of the three parties sharing the risk is obtained. This model is helpful for all parties to clarify the risk responsibility of the PPP project of construction waste recycling, to increase the efficiency of project risk management, and to promote the development of construction waste industrialization in China.