Game Theoretic Model and Strategic Implications of Promoting Cooperation of Construction Joint Ventures

Joint ventures (JVs) are one of the commonly used organizational forms in the construction industry today. The advantages of using construction joint ventures (CJVs) include consolidating each other's resources, diversification of project risks, enhancing project contracting opportunities and achieve economies of scale, etc. Because of the potential competition between CJVs partners, barriers to cooperation often appear. Cooperation or not has a deep impact on JV performance, but how to promote cooperation receives little attention. That's why we would like to investigate the strategies for promoting cooperation of CJVs. We will first collect the relevant literatures on the CJVs, trust and cooperation in inter-organization relationship and opportunistic behavior in JVs. Then we setup a game theoretic model with important variables according to the cooperative relationship of construction joint ventures. Then, we put contextual variable into the model and analysis the equilibriums in different scenarios and finally put forward the strategic implications that can promote the cooperation of CJVs. © 2021, Chinese Institute of Civil and Hydraulic Engineering. All right reserved.