{"title":"基于投资者公平偏好的 PPP 项目中政府过度承诺的激励机制公平偏好","authors":"Qi Luo, Jicai Liu","doi":"10.3846/ijspm.2024.21028","DOIUrl":null,"url":null,"abstract":"In public-private partnerships (PPPs), governments sometimes may not afford the guarantees in full as initially agreed upon due to limited fiscal budgets. Accordingly, government overcommitment can occur. The degree of government overcommitment fulfillment affects not only the incentives provided by governments but also investors’ willingness to cooperate and efforts. However, until now, this government overcommitment risk has been ignored during negotiations. Moreover, little attention has been paid to the impact of investors’ fairness preference. To this end, this paper constructs an incentive mechanism of government overcommitment based on investors’ fairness preference in the horizontal and vertical dimensions. The results show that the optimal strategies of both sides are usually affected by the degree of government overcommitment fulfillment, investors’ fairness preference and their willingness to cooperate. Contrary to intuition, the optimal incentive of governments and investors’ efforts do not always increase with the decreasing degree of government overcommitment fulfillment, and thus, fairness preferences should be considered. It is not always the case that a higher-level government overcommitment fulfillment is better for themselves. The findings contribute new insights to the incentive mechanism to innovatively work toward creating an effective contract to pay more attention to government overcommitment risk in advance in PPPs.","PeriodicalId":14424,"journal":{"name":"International Journal of Strategic Property Management","volume":null,"pages":null},"PeriodicalIF":2.0000,"publicationDate":"2024-03-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":"{\"title\":\"INCENTIVE MECHANISM OF GOVERNMENT OVERCOMMITMENT IN PPPS BASED ON INVESTORS’ FAIRNESS PREFERENCE\",\"authors\":\"Qi Luo, Jicai Liu\",\"doi\":\"10.3846/ijspm.2024.21028\",\"DOIUrl\":null,\"url\":null,\"abstract\":\"In public-private partnerships (PPPs), governments sometimes may not afford the guarantees in full as initially agreed upon due to limited fiscal budgets. Accordingly, government overcommitment can occur. The degree of government overcommitment fulfillment affects not only the incentives provided by governments but also investors’ willingness to cooperate and efforts. However, until now, this government overcommitment risk has been ignored during negotiations. Moreover, little attention has been paid to the impact of investors’ fairness preference. To this end, this paper constructs an incentive mechanism of government overcommitment based on investors’ fairness preference in the horizontal and vertical dimensions. The results show that the optimal strategies of both sides are usually affected by the degree of government overcommitment fulfillment, investors’ fairness preference and their willingness to cooperate. Contrary to intuition, the optimal incentive of governments and investors’ efforts do not always increase with the decreasing degree of government overcommitment fulfillment, and thus, fairness preferences should be considered. It is not always the case that a higher-level government overcommitment fulfillment is better for themselves. The findings contribute new insights to the incentive mechanism to innovatively work toward creating an effective contract to pay more attention to government overcommitment risk in advance in PPPs.\",\"PeriodicalId\":14424,\"journal\":{\"name\":\"International Journal of Strategic Property Management\",\"volume\":null,\"pages\":null},\"PeriodicalIF\":2.0000,\"publicationDate\":\"2024-03-12\",\"publicationTypes\":\"Journal Article\",\"fieldsOfStudy\":null,\"isOpenAccess\":false,\"openAccessPdf\":\"\",\"citationCount\":\"0\",\"resultStr\":null,\"platform\":\"Semanticscholar\",\"paperid\":null,\"PeriodicalName\":\"International Journal of Strategic Property Management\",\"FirstCategoryId\":\"91\",\"ListUrlMain\":\"https://doi.org/10.3846/ijspm.2024.21028\",\"RegionNum\":4,\"RegionCategory\":\"管理学\",\"ArticlePicture\":[],\"TitleCN\":null,\"AbstractTextCN\":null,\"PMCID\":null,\"EPubDate\":\"\",\"PubModel\":\"\",\"JCR\":\"Q3\",\"JCRName\":\"MANAGEMENT\",\"Score\":null,\"Total\":0}","platform":"Semanticscholar","paperid":null,"PeriodicalName":"International Journal of Strategic Property Management","FirstCategoryId":"91","ListUrlMain":"https://doi.org/10.3846/ijspm.2024.21028","RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"MANAGEMENT","Score":null,"Total":0}
INCENTIVE MECHANISM OF GOVERNMENT OVERCOMMITMENT IN PPPS BASED ON INVESTORS’ FAIRNESS PREFERENCE
In public-private partnerships (PPPs), governments sometimes may not afford the guarantees in full as initially agreed upon due to limited fiscal budgets. Accordingly, government overcommitment can occur. The degree of government overcommitment fulfillment affects not only the incentives provided by governments but also investors’ willingness to cooperate and efforts. However, until now, this government overcommitment risk has been ignored during negotiations. Moreover, little attention has been paid to the impact of investors’ fairness preference. To this end, this paper constructs an incentive mechanism of government overcommitment based on investors’ fairness preference in the horizontal and vertical dimensions. The results show that the optimal strategies of both sides are usually affected by the degree of government overcommitment fulfillment, investors’ fairness preference and their willingness to cooperate. Contrary to intuition, the optimal incentive of governments and investors’ efforts do not always increase with the decreasing degree of government overcommitment fulfillment, and thus, fairness preferences should be considered. It is not always the case that a higher-level government overcommitment fulfillment is better for themselves. The findings contribute new insights to the incentive mechanism to innovatively work toward creating an effective contract to pay more attention to government overcommitment risk in advance in PPPs.
期刊介绍:
International Journal of Strategic Property Management is a peer-reviewed, interdisciplinary journal which publishes original research papers. The journal provides a forum for discussion and debate relating to all areas of strategic property management. Topics include, but are not limited to, the following: asset management, facilities management, property policy, budgeting and financial controls, enhancing residential property value, marketing and leasing, risk management, real estate valuation and investment, innovations in residential management, housing finance, sustainability and housing development, applications, etc.