Inspection on project superviser by real estate developer based on game theory

Abstract

The rent-seeking activities can severely deteriorate the quality of projects, increase the operation cost of developers and undermine regular market order. Therefore developers should inspect them to avoid supervisers' rent-seeking activities. This paper applies the game theory approach to analyze the problem. Firstly, this paper provides the expected utility functions of a project superviser and a developer, also establishes the game model and solves the equilibriums. Finally, this paper analyzes the influencing factors of a supervisor's rent-seeking activities and brings some countermeasures of inspection on supervisers according to the results of equilibrium analysis.