Game Theory Integration in Construction Management: A Comprehensive Approach to Cost, Risk, and Coordination under Uncertainty

Abstract

This study leverages game theory to address three interrelated challenges in construction management: cost allocation for blockchain technology, risk assessment in production planning, and coordination among stakeholders under conditions of uncertainty. Utilizing cooperative game theory and the Shapley value model, the research identifies a methodologically sound approach for the economically rational allocation of development and operational costs in blockchain-based management systems. In a novel application, stochastic frontier analysis and the weighted Shapley value model predict cost savings of up to 15% under cooperative scenarios compared to noncooperative approaches. For risk evaluation in multiperiod production planning, integrating the average value at risk with the Shapley value demonstrates a 20% increase in risk mitigation efficiency over traditional methods, addressing correlated and uncertain demands without strict probability distributions. A game-theoretic model developed for coordinating a manufacturer with multiple suppliers optimizes production, inventory, and pricing, reducing costs by 18% and inventory misalignments by 25% under demand uncertainty and asymmetric information. These findings underscore the practical utility of game-theoretic models in enhancing decision-making processes in the evolving construction management landscape, providing theoretical insights and empirical validations for cost-efficient, resilient, and effectively coordinated construction management practices.

Topics & Concepts