The game theory analysis of risk share for PPP project based on Shapley value

In this paper, utilizing Shapley value method in cooperative game theory, we identify the risk and return that every member should take in the PPP projects when it requires multiple participants share the risks. In accordance with the principle balance risk and return, the parties return is normalized to obtain the weight of risk-taking, and then determine the amount of the risk of proposed PPP projects that respective parties involved should bear. We proposed a new risk-sharing method. At last a numerical example is discussed.