Control Strategy on Road Toll Pricing under a BOT Scheme

Abstract

Abstract On the basis of the game theory, this article deals with the problem for the government to control the pricing of private toll roads under a BOT scheme. The discusses whether the toll road can bring benefits to society when the private sector determines the toll road price independently in pursuit of maximizing his own profit. Moreover, the principles, by which the government controls private road pricing, are deduced. Some useful findings are obtained, which can provide important support for the government to manage the BOT project.