A strategic options game approach to support PPP investment decisions under risk-sharing mechanisms

IF 4.4 3区 管理学 Q1 OPERATIONS RESEARCH & MANAGEMENT SCIENCE
Marta Biancardi, Michele Bufalo, Antonio Di Bari, Giovanni Villani
{"title":"A strategic options game approach to support PPP investment decisions under risk-sharing mechanisms","authors":"Marta Biancardi, Michele Bufalo, Antonio Di Bari, Giovanni Villani","doi":"10.1007/s10479-024-06155-6","DOIUrl":null,"url":null,"abstract":"<p>The need to obtain financial funds to pursue public utility investments implies the generation of Public-Private Partnership (PPP) projects. The PPP framework can involve risk-sharing mechanisms between public administration and private sector to encourage private investors to fund these projects. However, these risk-sharing mechanisms, such as Minimum Revenue Guarantee or Revenue Cap (RC), could generate opportunistic behaviors. For this reason, we can set this problem as a game in which government and private investors would act as players. This paper proposes a mathematical model to evaluate the PPP projects through a combination of Game Theory (GT) and Real Options Approach (ROA). The ROA is needed to price the uncertainty that affects PPP investments, and the GT captures the strategic interactions between public and private sectors. A case study on a wastewater treatment project is developed to apply the model we proposed.</p>","PeriodicalId":8215,"journal":{"name":"Annals of Operations Research","volume":null,"pages":null},"PeriodicalIF":4.4000,"publicationDate":"2024-07-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Annals of Operations Research","FirstCategoryId":"91","ListUrlMain":"https://doi.org/10.1007/s10479-024-06155-6","RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"OPERATIONS RESEARCH & MANAGEMENT SCIENCE","Score":null,"Total":0}
引用次数: 0

Abstract

The need to obtain financial funds to pursue public utility investments implies the generation of Public-Private Partnership (PPP) projects. The PPP framework can involve risk-sharing mechanisms between public administration and private sector to encourage private investors to fund these projects. However, these risk-sharing mechanisms, such as Minimum Revenue Guarantee or Revenue Cap (RC), could generate opportunistic behaviors. For this reason, we can set this problem as a game in which government and private investors would act as players. This paper proposes a mathematical model to evaluate the PPP projects through a combination of Game Theory (GT) and Real Options Approach (ROA). The ROA is needed to price the uncertainty that affects PPP investments, and the GT captures the strategic interactions between public and private sectors. A case study on a wastewater treatment project is developed to apply the model we proposed.

Abstract Image

支持风险分担机制下公私伙伴关系投资决策的战略选择博弈方法
需要获得财政资金来进行公用事业投资,这意味着需要建立公私合作伙伴关系 (PPP)项目。公私伙伴关系框架可涉及公共行政部门与私营部门之间的风险分担机制,以鼓励私人投资者为这些项目提供资金。然而,这些风险分担机制,如最低收入保证或收入上限(RC),可能会产生机会主义行为。因此,我们可以将这一问题设定为一个博弈问题,政府和私人投资者将作为博弈方。本文提出了一个数学模型,通过结合博弈论(GT)和实际期权法(ROA)来评估 PPP 项目。ROA需要对影响 PPP 投资的不确定性进行定价,而博弈论则捕捉了公共部门和私营部门之间的战略互动。为了应用我们提出的模型,我们对一个污水处理项目进行了案例研究。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
求助全文
约1分钟内获得全文 求助全文
来源期刊
Annals of Operations Research
Annals of Operations Research 管理科学-运筹学与管理科学
CiteScore
7.90
自引率
16.70%
发文量
596
审稿时长
8.4 months
期刊介绍: The Annals of Operations Research publishes peer-reviewed original articles dealing with key aspects of operations research, including theory, practice, and computation. The journal publishes full-length research articles, short notes, expositions and surveys, reports on computational studies, and case studies that present new and innovative practical applications. In addition to regular issues, the journal publishes periodic special volumes that focus on defined fields of operations research, ranging from the highly theoretical to the algorithmic and the applied. These volumes have one or more Guest Editors who are responsible for collecting the papers and overseeing the refereeing process.
×
引用
GB/T 7714-2015
复制
MLA
复制
APA
复制
导出至
BibTeX EndNote RefMan NoteFirst NoteExpress
×
提示
您的信息不完整,为了账户安全,请先补充。
现在去补充
×
提示
您因"违规操作"
具体请查看互助需知
我知道了
×
提示
确定
请完成安全验证×
copy
已复制链接
快去分享给好友吧!
我知道了
右上角分享
点击右上角分享
0
联系我们:info@booksci.cn Book学术提供免费学术资源搜索服务,方便国内外学者检索中英文文献。致力于提供最便捷和优质的服务体验。 Copyright © 2023 布克学术 All rights reserved.
京ICP备2023020795号-1
ghs 京公网安备 11010802042870号
Book学术文献互助
Book学术文献互助群
群 号:481959085
Book学术官方微信