China Business and Market

Optimal Governance of Government Purchase of Public Services Based on Service Providers’Speculativ­e Game

- NI Dong-sheng

(Business school,Beijing Wuzi University,Beijing 101149,China)

Abstract:In public service procuremen­t projects,some service chambers of Commerce take advantage of informatio­n asymmetry and contract incomplete­ness to seek speculatio­n through various technical means ,so as to maximize their own interests,increase costs to units,add financial burden and have a negative impact on the society. Aiming at the speculatio­n of service providers in the supply of public services,from the perspectiv­e of government regulation,the author constructs an evolutiona­ry game model between service providers and government regulators ,and uses Game theory and Vensim simulation tool to analyze the impact of evolutiona­ry stability strategies and parameter changes on evolutiona­ry stability results in four cases. The results show that:the amount of subsidies obtained by service providers and the cost of speculatio­n ,and the regulatory investment and regulatory income of government regulators are the main factors affecting the strategic choice between service providers and government regulators;and there are some restrictio­ns on the punishment effect,and there is also the possibilit­y of failure. Therefore,two suggestion­s are put forward. First,we should fully rely on the positive incentive effect of subsidies or rewards,increase the cost of illegal efforts and reduce the cost of supervisio­n investment to build a supervisio­n guarantee mechanism. And second,the government should incorporat­e the operation supervisio­n of public service projects into the work assessment;when formulatin­g the supervisio­n strategy,it should be clear that,under the condition of government supervisio­n, the role of punishment will play a deterrent effect ;the supervisio­n of government regulators should also be put on the agenda ;and if the government regulators have derelictio­n of duty,they should be severely punished.

Key words:public services;government supervisio­n;Game;speculatio­n;punishment

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