scholarly journals Cooperation in Threshold Public Projects with Binary Actions

Author(s):  
Yiling Chen ◽  
Biaoshuai Tao ◽  
Fang-Yi Yu

When can cooperation arise from self-interested decisions in public goods games? And how can we help agents to act cooperatively? We examine these classical questions in a pivotal participation game, a variant of public good games, where heterogeneous agents make binary participation decisions on contributing their endowments, and the public project succeeds when it has enough contributions. We prove it is NP-complete to decide the existence of a cooperative Nash equilibrium such that the project succeeds. We demonstrate that the decision problem becomes easy if agents are homogeneous enough. We then propose two algorithms to help cooperation in the game. Our first algorithm adds an external investment to the public project, and our second algorithm uses matching funds. We show the cost to induce a cooperative Nash equilibrium is near-optimal for both algorithms. Finally, the cost of matching funds can always be smaller than the cost of adding an external investment. Intuitively, matching funds provide a greater incentive for cooperation than adding an external investment does.

2012 ◽  
pp. 35-63
Author(s):  
Giuseppe Clerico

Public projects (to be understood as the set of public choices that affect human behavior and the dynamics of the economic system) can result in an immediate and a future stream of benefits or an immediate flow of benefits with costs occurring in the future. The public choice, therefore, raises both the problem of intergenerational relations and the criterion of fairness (distributive justice) that governs them. The problem arises because, given the non-simultaneity of the costs and benefits of a project, discrepancies may arise in treatment between the generations. The time raises a twofold objective: the pursuit of distributive justice in intergenerational and the need to respect the criterion of intergenerational efficiency level. Closely connected to this dual aim is the problem of the discount rate. As a euro today has a value other than a euro available within a few years the monetary values that accrue in different times must be discounted. The opportunity to use the discount rate raises issues of both fairness and efficiency at both intra-and intergenerational level. Different levels of discount rate implies different burden for different generations. A level is appropriate to distinguish between the problems of fairness from the problems of efficiency. The opportunity of using the discount rate is based on two essential elements: the opportunity cost of capital, and the time preference of the subjects which in turn depends on factors such as impatience and uncertainty. The current evaluation of a public project depends on individual willingness to pay for that project. It follows that the discount of this assessment is similar to the discount of monetary values that ripen at different times. The cost-benefit assessment needs using the discount rate, but the use raises, in particular, the problem of intergenerational fairness.


Author(s):  
Frederico Finan ◽  
Maurizio Mazzocco

Abstract Politicians allocate public resources in ways that maximize political gains, and potentially at the cost of lower welfare. In this paper, we quantify these welfare costs in the context of Brazil’s federal legislature, which grants its members a budget to fund public projects within their states. Using data from the state of Roraima, we estimate a model of politicians’ allocation decisions and find that 26.8% of the public funds allocated by legislators are distorted relative to a social planner’s allocation. We then use the model to simulate three potential policy reforms to the electoral system: the adoption of approval voting, imposing a one-term limit, and redistricting. We find that a one-term limit and redistricting are both effective at reducing distortions. The one-term limit policy, however, increases corruption, which makes it a welfare-reducing policy.


2019 ◽  
Vol 44 (4) ◽  
pp. 73-79
Author(s):  
Emad S. Mushtaha ◽  
Omar Hassan Omar ◽  
Dua S. Barakat ◽  
Hessa Al-Jarwan ◽  
Dima Abdulrahman ◽  
...  

The involvement of the public in the decision-making process is essential, especially in the early stages of a design process. This study aims to achieve the development of an architectural program for a memorial public project, using the outcomes of the Analytical Hierarchy Process (AHP) based on public opinion. It employs a novel approach that sharply focuses on public involvement in the design process, using a quantitative methodology for the development of a suitable building program and selecting a memorial form that meets the public's needs in a practical way. The study drew on data from various memorial projects to identify possible spaces and their selection criteria. A written questionnaire was distributed to a sample of 105 members of the public, to narrow down the number of spaces according to public response. Then, a hearing (spoken) questionnaire was conducted on a sample of 20 to produce the program for development by generating the most strongly preferred form of memorial. The results contradicted the existing norm for a memorial as a sculpture; it was revealed that most of the public preferred memorial landscapes to buildings and great structures. The study concluded that AHP could be used to further involve the relevant stakeholders in the decision-making process of the design of a public project.


2010 ◽  
Vol 2010 ◽  
pp. 1-15 ◽  
Author(s):  
Hans J. Czap ◽  
Natalia V. Czap ◽  
Esmail Bonakdarian

The purpose of this paper is to investigate the effect of voting and excludability on individual contributions to group projects. We conducted two experiments on excludable and nonexcludable public goods, which provided several important results. First, contrary to our expectations, subjects are generally contributing more to the non-excludable compared to the excludable public good. Second, participating in a vote to choose a public project per se makes no difference in contributions. However, if the project that the individual voted for also gets selected by the group, they contribute significantly more to that project. Third, empathy and locus of control are important driving forces of participation in common projects. Our results have implications on the procedural design of obtaining funding for public projects. First, the public should get involved and have a say in the determination of which project should be realized. Second, it might well pay off to attempt to develop a consensus among the population and obtain near unanimous votes, because in our experiment, subjects discriminate between the project they voted for and the project chosen by the majority. Third, the policy proposers should stress the other-regarding interest of the public good rather than just pecuniary incentives.


2018 ◽  
Vol 3 (2) ◽  
pp. 145
Author(s):  
Wenxi Yi

<em>General Secretary Xi has repeatedly stressed the need for redevelopment of public projects in the party’s nineteenth report, accelerating the construction of projects and seeking for greater development. Public project construction is the main vehicle of public administration and is the cornerstone of overall social operation. Due to the majority of public welfare projects that are characterized by economic and social development services, which are non-profit, difficult to profit or have a long payback period, they are often necessary for the development of national or regional economic development. Therefore, NGO need to participate in and participate in the public project construction with their advantages and particularity. NGO undertake many governmental responsibilities and functions that cannot be performed by the government. However, in practice, the NGO faces many problems and difficulties.</em>


2018 ◽  
Vol 18 (4) ◽  
pp. 412-432 ◽  
Author(s):  
Nurul Afroze Zainal Abidin ◽  
Bingunath Ingirige

Purpose The dynamics and effects of interconnected risks among construction organisations tend to be overlooked across the Malaysian public project supply chains, making them highly vulnerable to supply chain disruptions. This study aims to investigate this dynamism by assessing the supply chain’s critical vulnerabilities and capabilities that formulate the level of resilience in handling disruptive events in construction projects. Design/methodology/approach A comprehensive questionnaire survey was conducted with 105 construction professionals from two groups of respondents, the public and private organisations that work in public projects to identify their current vulnerabilities and capabilities. Data were analysed and compared using the Mann–Whitney U and Kruskal–Wallis tests. Findings The findings revealed that the top five critical vulnerability factors of the supply chain include political or regulatory changes, market pressures, management, financial and strategic vulnerability. Further comparisons highlighted that the public organisations faced significantly higher political threats compared to the private organisations whilst the private organisations faced significant market pressures. The survey also shows that despite the private organisations’ high capability in financial strength, the public organisations’ financial vulnerability has destabilised the entire supply chain. Originality/value This study presents the construction supply chain’s vulnerabilities in a layered framework approach that can provide managers a new perspective on the dynamics of the cascading impacts of these vulnerabilities when observed through several layers of supply chains.


2013 ◽  
Vol 2013 ◽  
pp. 1-13 ◽  
Author(s):  
Eduardo Fernandez ◽  
Rafael Olmedo

A new democracy paradigm is emerging through participatory budgeting exercises, which can be defined as a public space in which the government and the society agree on how to adapt the priorities of the citizenship to the public policy agenda. Although these priorities have been identified and they are likely to be reflected in a ranking of public policy actions, there is still a challenge of solving a portfolio problem of public projects that should implement the agreed agenda. This work proposes two procedures for optimizing the portfolio of public actions with the information stemming from the citizen participatory exercise. The selection of the method depends on the information about preferences collected from the participatory group. When the information is sufficient, the method behaves as an instrument of legitimate democracy. The proposal performs very well in solving two real-size examples.


2013 ◽  
Vol 357-360 ◽  
pp. 2215-2221
Author(s):  
Bao Ku Qi ◽  
Chang Fu Li ◽  
Zhao Lu ◽  
Ming Zhen Wang

By analyzing the current situation of public project construction program evaluation study, for the public projects characteristics, establish of comprehensive evaluation index system., use AHP and DEA method to establish the evaluation model, and use DEAP software to calculate indicator data, in order to achieve an objective evaluation of public project construction program. Combined with the instance to prove the feasibility of the method, aims to provide a scientific and effective method on Construction Program Evaluation of Public project.


2017 ◽  
Vol 3 (4) ◽  
pp. 73
Author(s):  
Deborah Bose Adedeji ◽  
Akinloye Fatai Lawal ◽  
Olayemi Oladehinde Simon-Oke

This paper evaluates the governance factors that are responsible to the mismanagement of public project funds in Nigeria. Governance factors are variables that influence the effective usage of project funds to achieve project delivery while public projects relate to works done by the government to meet public interest. The target population for this study include ministries, departments and agencies (MDAs) in the public sector in Ondo State comprising a total number of seventy-four (74) establishments in the state. Primary and secondary data were collected. Principal component analysis method and explorative factor analysis were combined to extract the five relevant governance factors that impact public project delivery in the study area. Findings reveal that execution of public projects could be fettered with different types of corrupt practices such as bribery, favour-to-favour, nepotism, percentage sharing and contract inflation in the study area; however, weaknesses and lapses were observed in bureaucracy, accountability and due process. Therefore, the study suggests among others, that there should be a political will to redress corruption dilemma, tighten accountability, due process and bureaucratic control in project environment.


2015 ◽  
Vol 22 (2) ◽  
pp. 169-189 ◽  
Author(s):  
Florence Y.Y. Ling ◽  
Peng Chong Tan ◽  
Yan Ning ◽  
Albert Teo ◽  
Asanga Gunawansa

Purpose – The purpose of this paper is to investigate relational contracting (RC) practices that give rise to higher quality interpersonal relations between these pairs of stakeholders at the end of public projects: clients and contractors; contractors and consultants; and clients and consultants. It developed models to predict the level of quality of interpersonal relations between the stakeholders at the completion of public projects. Design/methodology/approach – Using a set of questionnaire, data were collected from randomly selected construction industry practitioners who have had experience in public projects in Singapore. The data were analysed to identify association between the use of RC practices and quality of interpersonal relations between stakeholders. In-depth interviews with experts were conducted. Findings – It was found that when certain RC practices were adopted to a larger extent, public projects also have significantly higher quality of interpersonal relations between clients, contractors and consultants. Three mathematical models were developed to predict the relationship quality between stakeholders at the end of the public project. Research limitations/implications – The limitations include the subjective nature of the Likert scale that was used in answering the questionnaire survey and the limited number of interviews. The effect of existing good relations among stakeholders was not taken into account. Practical implications – Suitable RC practices for adoption by public clients, contractors and consultants in public projects are recommended. These include developing deeper mutual trust and understanding, sharing project information, and having real gain-share/pain-share among contracting parties. Originality/value – RC practices that are significantly associated with relationships among contracting parties in public projects in Singapore are uncovered. Contracting parties may use the recommendations to help enhance their relationships with one another in a public project.


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