TY  - JOUR
AB  - Purpose– The purpose of this paper is to understand the root cause of a large number of quality problems in the current Chinese construction market.Design/methodology/approach– Information economics theory is used to analyze the cause of construction quality problems related to the specific case of the Wenchuan earthquake of China.Findings– The single low price competition in the construction tender market leads to the serious adverse selection and moral hazard behavior of bidding firms. The main solution to this problem is the introduction and improvement of an independent inspection/supervision mechanism.Originality/value– The paper systematically analyzes the evaluation method of the lowest price winning bidding policy, which is the fundamental cause of adverse selection and moral hazard problems in the Chinese construction market.
VL  - 20
IS  - 4
SN  - 0965-3562
DO  - 10.1108/09653561111161699
UR  - https://doi.org/10.1108/09653561111161699
AU  - Liu Dehai
AU  - Xu Weijun
AU  - Li Hongyi
AU  - Zhang Weiguo
AU  - Wang Weiguo
PY  - 2011
Y1  - 2011/01/01
TI  - Moral hazard and adverse selection in Chinese construction tender market: A case of Wenchuan earthquake
T2  - Disaster Prevention and Management: An International Journal
PB  - Emerald Group Publishing Limited
SP  - 363
EP  - 377
Y2  - 2024/09/23
ER  -