Analysis about the collusion between the traffic administrative department and the franchised enterprise in the franchising operation of highway

This paper mainly discussed the benefit and cost on the non- productive activities between the traffic administrative department and the franchised businesses by the tool of game theory, as well as how consumers to inspect and supervise the corruption caused by such non-productive activities. On assumption that the economic man is rational and the risk is moderate, we built a tripartite game model by working out the political implications of the variable parameters in the Nash equilibrium, and then put forward some countermeasures.