Decision-Making Model on Concession Term for BOT Project Based on Profitable Operational Period
It is necessary for the government to determine a profitable operational period according to the building cost for BOT project and transfer one part of profitable operational period as the concession term to the project company. On the basis of game theory, this paper proposes a model to describe the competition between the government and the project company. The optimal strategies for them are discussed respectively by solving the game model. The obtained results can provide them with a decision-making support for BOT project.