THE GAME ANALYSIS OF THE CITY CONSTRUCTION LOCATION DECISION IN THE CONTEXT OF BUILT LONG DISTANCE OIL AND GAS PIPELINES

Hongyong LIU, Fang WU

School of Civil Engineering and Architecture, Southwest Petroleum University, Chengdu, 610500, CHINA

Abstract: With the continuous expansion of city area, there are safety risks in the long distance oil and gas pipelines which built in the outskirts of the city. For security reasons, there should be a safe distance between the long distance oil and gas pipelines and the border of city. So the government should choose another place to development of city construction, it will have an impact on the city construction plan. Based on this, in the process of city construction, it is a question worth exploring for the government to make a location decision of city construction when faced to the long distance oil and gas pipelines. The study uses the theory and the method of game theory to establish a dynamic game model of complete information of pipeline operators and the government. It also establishes a three stage dynamic game model after the technological innovation implemented by the pipeline operators. And it researches the factors which affect the government’s decisions. Finally it concludes the sub-game perfect Nash equilibrium game, and provides the decision-making basis for the conflict of long distance pipelines and city construction.

Keywords: Long Distance Pipelines; Urban Construction; Game Theory