Using bi-level programming to analyze the royalty for private--public partnership projects: the operational quantity-based model
Chao-Chung Kang,
Cheng-Min Feng and
Chiu-Yen Kuo
Transportation Planning and Technology, 2010, vol. 33, issue 3, 315-328
Abstract:
This paper develops a royalty negotiation model based on the operating quantity of Build, Operate, and Transfer (BOT) projects for both government and the private sector using a bi-level programming (BLP) approach. The royalty negotiation is one of many critical negotiation items of a concession contract. This study develops a royalty negotiation model to simulate the negotiation behavior of two parties, and derives the heuristic algorithm for the BLP problem. A number of factors are incorporated into this algorithm including the concession rate, the time value discount rate, the learning rate, and the number of negotiations. The paper includes a case study of the Taipei Port Container Logistic BOT Project. The results show that the two parties involved completed royalty negotiation at the sixth negotiation stage. The findings show that the government can receive a royalty from the concessionaire, calculated at 0.00386% of the operating quantity of this BOT project. Therefore, the royalty negotiation model developed here could be employed to explain negotiation behavior.
Date: 2010
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1)
Downloads: (external link)
http://hdl.handle.net/10.1080/03081061003732383 (text/html)
Access to full text is restricted to subscribers.
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:taf:transp:v:33:y:2010:i:3:p:315-328
Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/GTPT20
DOI: 10.1080/03081061003732383
Access Statistics for this article
Transportation Planning and Technology is currently edited by Dr. David Gillingwater
More articles in Transportation Planning and Technology from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().