Decision-making Model of Concession Price and Period for Traffic BOT Projects under Elastic Demand

Recently, the BOT (build-operate-transfer) scheme has been garnering increasing attention from both academic and practical fields. In order to make the decision-making more scientific and effective, this paper takes traffic BOT projects as research objectives, and proposes a dynamic game model of complete information to balance the benefits of the government and company. According to the refining Nash equilibrium solution, a discussion about relevant properties and effects of traffic demand changes under elastic demand due to various concession price and period is conducted. Ultimately, a numerical example is adopted to verify the model and equilibrium solution.