Analysis of Game Model and Strategy of EPC General Contractor and Subcontractor

Abstract

This paper conducted in-depth research of behavior motivation of EPC general contractor and the subcontractor by using the game theory, systematically analyzed all kinds of game models that may appeared during the cooperation of general contractor and subcontractor. It also revealed the essence of “Prisoner’s Dilemma “Deer’s Trap” and unilateral promises. Finally, this paper introduced the credit accumulation and long-term benefits, which would affect general contractor and subcontractor decisions during repeated games, and they will reach “win-win situation” of Pareto efficiency and stable cooperation relationship. This study provides the important basis for the healthy development of the EPC model and for the cooperative relationship decision making for construction enterprises.