Moral hazard and adverse selection in Chinese construction tender market

Liu, Dehai; Xu, Weiqing; Li, Hongyi; Zhang, Weiguo; Wang, Weiguo

doi:10.1108/09653561111161699

Cited by 19 publications

(14 citation statements)

References 12 publications

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“…To explore the impact of asymmetry in terrorist's attributes between government and terrorist on defense equilibrium, Nikoofal and Zhuang built a game model that the government chooses between disclosure and secrecy of her defense system [12]. To well understand the quality problems in the construction market in China, Liu et al proposed a principle-agent model to investigate construction project bidding and the root causes of the potential risks in the process of postearthquake reconstruction [13]. Besides, much more existing literature revealed the relationships among stakeholders in the research of different types of risk management, such as anti-terrorist [14,15] and environmental risk control [16].…”

Section: Mcmillan Et Al Proposed a Game-theoretic Model To Analyzementioning

confidence: 99%

System dynamics mechanism of cross-regional collaborative dispatch of emergency supplies based on multi-agent game

Qiu

Shi

Zhao

et al. 2021

Complex Intell. Syst.

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The cross-regional coordinated dispatch of emergency supplies is a complex issue involving multiple topics, which covers multiple relationships and is affected by multiple variables. In the face of severe emergencies, relief supplies inside a specific area are far from meeting the explosive demand for emergency supplies. Besides, the supply of emergency materials and the disaster areas often have a spatial mismatch. Considering the attributes of externalities and public goods of emergency rescue, there are many obstacles for Local administration of emergency (LAE) and emergency logistics enterprises (ELE) spontaneously carrying out emergency supplies across regions. To solve this complexity problem, this research abstracts higher-level administration of emergency (HAE), LAE and ELE as the main stakeholders, with which a tripartite evolutionary game (ETG) model and a system dynamic (SD) model are constructed to analyze the dynamic mechanism of the complex system and to carry out the numerical simulation of the three-party game process. All the analyses and tests in this study have proved that the strong supervision of HAE has a decisive impact on the realization of cross-regional coordinated dispatch of emergency supplies, and the financial rewards and punishments imposed by HAE on other entities can accelerate or delay the achievement of the equilibrium strategy. However, when HAE chooses not to regulate, the cooperation willingness of LAE affects a lot that all the stakeholders will eventually reach equilibrium at (1,1,1) only if LAE chooses to actively carry out cross-regional coordinated dispatch of emergency supplies.

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Section: Mcmillan Et Al Proposed a Game-theoretic Model To Analyzementioning

confidence: 99%

System dynamics mechanism of cross-regional collaborative dispatch of emergency supplies based on multi-agent game

Qiu

Shi

Zhao

et al. 2021

Complex Intell. Syst.

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show abstract

“…Factors that leading to the occupational ethics risk of technical transaction are closely related to the characteristics of the field, for example, seek quick success and instant benefits [35,36], opportunistic psychology [18,30,31,37], asymmetry of information [28,31], poor supervision and punishment [38][39][40], poor absorption capacity of the technology importer [41], great difference in cooperation objectives and expectations of the parties [33,42], poor technical competition intelligence capacity of enterprises [43,44], high uncertainty in technology research and development [3,45], fierce market competition [14,39,46], high cost of know-how [1,22,27], and unreasonable incentive mechanism of technology transaction [47,48].…”

Section: Factors Leading To Occupational Ethics Risk In Technology Trmentioning

confidence: 99%

Exploring the Factors Triggering Occupational Ethics Risk of Technology Transaction in Chinese Construction Industry

Liu

Lin

Liu

et al. 2020

IJERPH

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The importance of occupational ethics risk considerations during technology transaction in the construction industry is acknowledged. This is particularly in that the industry plays a significant part in a nation’s development. The technology transaction has seen an increase in activity due to massive infrastructure development programmers adopted by governments and increase in external investment. The technology transaction, like any other, is not immune to unethical occupational behavior. This study aims to investigate the source of occupational ethics risk during technology transaction in the Chinese construction industry. A review of literature demonstrated that a number of contextual factors can influence unethical occupational risk practices. In total, 130 engineering practitioners took part in a questionnaire survey to explore the source of occupational ethics risk during the technology transaction in the Chinese construction industry. Firstly, there were 25 factors identified through literature review overall, which were sorted and analyzed. Among the twenty-five factors, three were identified as the most significant factors: Unreasonable incentives for technology trading; poor regulation; and asymmetry of information. Then, through exploratory factor analysis (EPA) method, the twenty-five factors were divided into seven groups: legal environment, industry environment, incompleteness of information, asymmetry of information, difficulty of observation of information, differences between the two sides of cooperation, and incorrect conceptual awareness. This study provided an added dimension to the understanding of occupational ethics risk issues during the technology transaction in the Chinese construction industry. This paper therefore contributes to the list of countries where similar studies have been undertaken.

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“…As with many developing nations, the construction industry consumes a large amount of resources and energy, generally involving poor working conditions, frequent conflicts, and significantly negative impacts on the environment (Fenn et al 1997;Lu and Tam 2013;Shen and Tam 2002). There are also more than million immigrant construction workers in China, many of whom are not paid on time (CBS 2013); this, along with China's other structural problems and below-standard worker safety, has also contributed to a large number of casualties in the construction industry (Liu et al 2011). The prevalence of corruption and collusive bidding are also another two well-known problems (Xiao 2014).…”

Section: The Situation In Chinamentioning

confidence: 99%

Impact of Corporate Credit Scoring on Construction Contractors in China

Xiong

Skitmore

Xia

et al. 2019

J. Constr. Eng. Manage.

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In an attempt to enhance the trustworthiness of contractors and reduce corruption, the China Government has launched a construction contractor credit scoring (CCCS) scheme in Beijing for evaluating the compliance and integrity of contractors registered in the construction market. The contribution of this paper to the Body of Knowledge is to analyze how the incorporation of CCCS may affect general contractors' present and future competitiveness through a case study in China. The paper analyzes the procurement of 158 building projects tendered in Beijing, involving 2071 local general contractors active in the market. The resultsshow that (1) the contractors' CCCS scores are important for being awarded large and mega project contracts; (2) CCCS scores have a generally positive effect on future corporate financial income; and (3) that, contrary to expectations, the policy does not increase the CCCS of companies. Finally, it is observed how the changing trend in contractors' CCCS scores is highly

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Moral hazard and adverse selection in Chinese construction tender market

Cited by 19 publications

References 12 publications

System dynamics mechanism of cross-regional collaborative dispatch of emergency supplies based on multi-agent game

System dynamics mechanism of cross-regional collaborative dispatch of emergency supplies based on multi-agent game

Exploring the Factors Triggering Occupational Ethics Risk of Technology Transaction in Chinese Construction Industry

Impact of Corporate Credit Scoring on Construction Contractors in China

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