Analysis of Bidding Collusion Problem Based on Game Theory

Collusion problem is very severe in bidding activities in China. It does great harm to engineering quality, market mechanism construction and country benefit. It is the problem which has to be resolved in consummating the bidding mechanism in China. In this paper, We analyze this problem based on game theory. There are two kinds of collusion, collusion between tenderer and tenderee, and collusion among tenderers. We just analyze the latter. Firstly we make an once game analysis. And then a multiple games analysis is given. On the foundation of the analysis result, corresponding measures to reduce the collusion behaviors are proposed.