›› 2018, Vol. 30 ›› Issue (11): 257-265.

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Profit Allocation of PPP Project from the Perspective of Incentives——The Case of Chinese Enterprises' Investment in the Infrastructure Projects of GMS Countries under the Support of Asian Infrastructure Investment Bank

Chang Yanan, Wang Songjiang   

  1. Faculty of Management and Economics, Kunming University of Science and Technology, Kunming 650093
  • Received:2016-08-10 Online:2018-11-28 Published:2018-11-22

Abstract:

Scientific and fair assignment of profit is one of the key factors in the success of PPP projects. From the perspective of incentive, the distribution of benefits is an incentive measure that can effectively solve the contradiction between public and private sectors. The contradiction is generated by different interest demands between the public and the private sectors. In consideration of the factors that affect the distribution of PPP projects, this paper establishes the Modified Shapley Value Method. By analyzing the project Chinese enterprises' investment in the infrastructure projects of GMS countries under the support of Asian Infrastructure Investment Bank, it shows that the model can achieve the optimal profit assignment.

Key words: PPP, profit allocation, Shapley, Asian Infrastructure Investment Bank, incentives