Research on the Application of Project Arrears Based on Complete Information Repeated Game Theory

The paper first introduced the background and causes of arrears of project arrears, and got the following four reasons: unimplemented Project funds; imbalance supply and demand of the construction market; layers of subcontracting; imperfect credit system of the market. This paper talked about the implication of Game Theory in this problem, which introduced the project guarantee to start the complete information repetaed game theory between the owner and the general contractor. By introducing the principle and characteristics of game theory in detail and analyzing the advantages and disadvantages of static game and repeated game, summed up the use of the repeated game to discuss the project problem is more applicable. The paper deals with the game process and obtains the sub-game refined Nash equilibrium, obtaining the following points to solve the project arrears:reducing the total contractor's performance guarantee amount,increasing the amount of the owner's project guarantee, reducing the owner's delayed payment benefit, reducing the total contractor's delay in paying the cost of savings.