The Dynamic Game of Complete Information for Developing Cyclic Economy of Highway Projects Construction
Both the government and the firms are concerning about the development of cyclic economy for highway projects construction. However, the huge investment risks and technology spillover are primary obstacle for developing and research of energy saving and emission reduction. This paper introduces the theory of the dynamic game of complete information to analyze how the government provide sufficient subsidy and make preferential policy to promote the firms to do it for their own interests. According to the establishment of sub-game perfect Nash equilibrium under non-corporative conditions, it indicates clearly that the most effective measures to make sure the firms to develop cyclic economy is that the government should maintain the highest rate of subsidies to the first firm who is willing to developing the energy saving technology.
Dongye Sun, Wen-Pei Sung and Ran Chen
C. Yuan and B. Ma, "The Dynamic Game of Complete Information for Developing Cyclic Economy of Highway Projects Construction", Applied Mechanics and Materials, Vols. 71-78, pp. 2707-2711, 2011