A coordination game model for risk allocation of a PPP project with the weakened hedged probabilistic linguistic term information. Issue 1 (31st December 2023)

• Record Type: Journal Article
• Authors: Wang, L. N.; Xu, Z. S.
• Is Part Of: Ekonomska istraživanja. Volume 36:Issue 1(2023)
• Page Start: 593
• Page End: 613
• Publication Date: 2023-12-31
• Subjects: Risk allocation -- probability linguistic terms with weakened hedges (P-LTWHs) -- game theory -- PPP project; C7 -- C79; Economics -- Research -- Periodicals; Economics -- Research; Electronic journals; 330.072
• DOI: 10.1080/1331677X.2022.2078988
• Languages: English
• ISSNs: 1331-677X

Abstract

Abstract: Risk allocation is a considerable part of public-private partnership (PPP) projects' achievement during risk management. Regarding the complication of PPP projects, the difficulty of risk management, and the incomplete information of the project, it may be complicated to allocate risk factors with numbers, which may cause players' hesitations, the poor performance of strategies, and the complexity of risk allocation process. To display the dynamic and the objective of risk allocation strategies, players prefer to take linguistic variables to depict their strategies. In this paper, we take the linguistic expression, the probabilistic linguistic terms with weakened hedges (P-LTWHs) to express players' strategies. The P-LTWHs not only take the hedges of linguistic variables but also consider the probabilities of choosing the corresponding linguistic variables. With the perspective of viewpoints dynamics, we developed risk allocation models of the market risk with coordination game under the P-LTWHs environment. Finally, we give some suggestions of risk allocation models with P-LTWHs information.