Cost Allocation in PPP Projects: An Analysis Based on the Theory of “Contracts as Reference Points”

In recent years, the demand for infrastructure has been largely driven by the economic development of many countries. PPP has proved to be an efficient way to draw private capital into public utility construction, where ownership allocation becomes one of the most important clauses to both the gover...

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Main Authors: Yichen Peng, Jing Zhou, Qiang Xu, Xiaoling Wu
Format: Article
Language:English
Published: Wiley 2014-01-01
Series:Discrete Dynamics in Nature and Society
Online Access:http://dx.doi.org/10.1155/2014/158765
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author Yichen Peng
Jing Zhou
Qiang Xu
Xiaoling Wu
author_facet Yichen Peng
Jing Zhou
Qiang Xu
Xiaoling Wu
author_sort Yichen Peng
collection DOAJ
description In recent years, the demand for infrastructure has been largely driven by the economic development of many countries. PPP has proved to be an efficient way to draw private capital into public utility construction, where ownership allocation becomes one of the most important clauses to both the government and the private investor. In this paper, we establish mathematical models to analyze the equity allocation problem of PPP projects through a comparison of the models with and without the effects of the theory of “contracts as reference points.” We then derive some important conclusions from the optimal solution of the investment ratio.
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institution OA Journals
issn 1026-0226
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publishDate 2014-01-01
publisher Wiley
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spelling doaj-art-88590af41f034a459b27d9354166d35a2025-08-20T02:09:10ZengWileyDiscrete Dynamics in Nature and Society1026-02261607-887X2014-01-01201410.1155/2014/158765158765Cost Allocation in PPP Projects: An Analysis Based on the Theory of “Contracts as Reference Points”Yichen Peng0Jing Zhou1Qiang Xu2Xiaoling Wu3School of Management and Engineering, Nanjing University, Nanjing 210000, ChinaSchool of Management and Engineering, Nanjing University, Nanjing 210000, ChinaSchool of Management and Engineering, Nanjing University, Nanjing 210000, ChinaSchool of Economics and Management, Nanjing University of Technology, Nanjing 210009, ChinaIn recent years, the demand for infrastructure has been largely driven by the economic development of many countries. PPP has proved to be an efficient way to draw private capital into public utility construction, where ownership allocation becomes one of the most important clauses to both the government and the private investor. In this paper, we establish mathematical models to analyze the equity allocation problem of PPP projects through a comparison of the models with and without the effects of the theory of “contracts as reference points.” We then derive some important conclusions from the optimal solution of the investment ratio.http://dx.doi.org/10.1155/2014/158765
spellingShingle Yichen Peng
Jing Zhou
Qiang Xu
Xiaoling Wu
Cost Allocation in PPP Projects: An Analysis Based on the Theory of “Contracts as Reference Points”
Discrete Dynamics in Nature and Society
title Cost Allocation in PPP Projects: An Analysis Based on the Theory of “Contracts as Reference Points”
title_full Cost Allocation in PPP Projects: An Analysis Based on the Theory of “Contracts as Reference Points”
title_fullStr Cost Allocation in PPP Projects: An Analysis Based on the Theory of “Contracts as Reference Points”
title_full_unstemmed Cost Allocation in PPP Projects: An Analysis Based on the Theory of “Contracts as Reference Points”
title_short Cost Allocation in PPP Projects: An Analysis Based on the Theory of “Contracts as Reference Points”
title_sort cost allocation in ppp projects an analysis based on the theory of contracts as reference points
url http://dx.doi.org/10.1155/2014/158765
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AT xiaolingwu costallocationinpppprojectsananalysisbasedonthetheoryofcontractsasreferencepoints