Application of Game Theory Approach in Solving the Construction Project Conflicts

Abstract Nowadays, conflicts between the involved parties in projects are common. So a useful decision making method should be considered for a better decision. Game theory approach can be used as an efficient framework in decision making about some problems and conflicts in construction projects. The aim of this paper is to find the best outcome in conflicts for every player (party) according to his opponents’ decision. Two game theory structures have been discussed here, Prisoners’ Dilemma and Chicken Game. Two types of probabilistic conflicts during the construction project have been discussed based on these two games and the results highlight the applicability of the game theory application in construction projects’ dispute resolving. The study also is resulted that application of the chicken game and prisoners’ dilemma game is so helpful for analyzing construction management problems.

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