Application of game theory in the project management of interaction between business structures and public-private partnerships
Time of antagonisms in the economy has passed, giving way to mutually beneficial cooperation. Economic entities that previously were competitors combine resources and efforts to achieve global goals. Pursuing their own goals, economic entities create alliances and choose the tactics of concerted action. To make decisions, they need an effective tool. This tool — mathematical apparatus of the theory of games. Co-operation takes place for a specific purpose with a defined budget and time frame, therefore coalitions of private companies as well as government and firms have the character of a project. Multitude of projects makes a program or portfolio of company’s projects. Projects are selected from all the potentially available projects based on certain criteria. The objectives of partners in the alliance may be different, and therefore, there is a conflict of interest. This article explains how an organization chooses the behavior strategy using the game theory and provides mathematical models to analyze the interaction. The practical implementation of non-cooperative games in application to construction projects and social infrastructure projects can be further extended to projects with similar characteristics. In other words, it is extended to interactions between commercial companies and «business-plus-state» interactions. Thus, the article describes the possibility and importance of applying the theory of games to decision-making in project management. The task is considered on the example of interaction between the structure of business and public-private partnership.