Abstract
The value co-creation is the true success of PPP projects. However, the traditional static governance based on project performance cannot cope with the lengthy process of value co-creation in PPP projects; as a result, the strategic asset of partnership has not been fully developed and utilized. This article takes the partnership in PPP projects as the starting point, defines the new connotation of the multi-value of PPP projects, introduces the trust parameter and establishes a contract incentive model based on the game theory which is a two-dimensional integration of contract and trust, and comprehensively analyzes the impact of the optimal incentive coefficient, optimal effort level, and trust level on the creation of cooperation value and overall project benefits by both parties through the establishment of a dual incentive game model of contract and trust. It provides path selection for promoting effective cooperation between the government department and social capitals to co-create project value.
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