IDEAS home Printed from https://ideas.repec.org/a/pal/jorsoc/v50y1999i12d10.1057_palgrave.jors.2600842.html
   My bibliography  Save this article

The selection of joint projects by a consortium: Cost sharing mechanisms

Author

Listed:
  • J A Aloysius

    (University of Arkansas)

  • E C Rosenthal

    (Temple University)

Abstract

This paper considers the problem of project selection and cost allocation for a partly decentralised organisation such as a research consortium, whose members have conflicting preferences and limited budgets. Three normative properties that project selection and cost sharing mechanisms which should satisfy are proposed. We introduce a class of efficient mechanisms called willingness to pay that satisfies the properties and solves the interdependent selection and allocation mechanisms through mathematical programming. These mathematical programming procedures are shown first, to improve upon existing cost sharing plans used in practice, and second, to be undominated by any other selection and allocation mechanism that satisfies the properties. However, in the case of private information the procedures are not incentive compatible. For this case, we provide an incentive compatible, though inefficient, mechanism, and prove that no efficient mechanism can exist for this class of problems.

Suggested Citation

  • J A Aloysius & E C Rosenthal, 1999. "The selection of joint projects by a consortium: Cost sharing mechanisms," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 50(12), pages 1244-1251, December.
    • Handle: RePEc:pal:jorsoc:v:50:y:1999:i:12:d:10.1057_palgrave.jors.2600842
    DOI: 10.1057/palgrave.jors.2600842
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/palgrave.jors.2600842
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1057/palgrave.jors.2600842?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Aloysius, John A., 1999. "Membership in a research consortium: the project selection game," Journal of Economic Behavior & Organization, Elsevier, vol. 40(3), pages 325-336, November.
    2. Eric Bahel & Christian Trudeau, 2013. "A discrete cost sharing model with technological cooperation," International Journal of Game Theory, Springer;Game Theory Society, vol. 42(2), pages 439-460, May.
    3. Aloysius, John A., 2002. "Research joint ventures: A cooperative game for competitors," European Journal of Operational Research, Elsevier, vol. 136(3), pages 591-602, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:jorsoc:v:50:y:1999:i:12:d:10.1057_palgrave.jors.2600842. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.