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JAIST Repository >
Center for Strategic Development of Science and Technology　2003-2008 >
JAIST PRESS Publications >
IFSR 2005 >
Please use this identifier to cite or link to this item:
https://hdl.handle.net/10119/3898
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| Title: | Profit and Risk Sharing in Virtual Enterprises |
| Authors: | Jian, CHEN
Jian-Feng, CHEN |
| Keywords: | virtual enterprise
profit sharing
productive effort
risk aversion
incentive intensity |
| Issue Date: | Nov-2005 |
| Publisher: | JAIST Press |
| Abstract: | Member enterprises engaged in a virtual enterprise shirk both productive effort and risk because their efforts are unobservable to any other member enterprise. How to design the profit and risk sharing mechanism to prevent the member enterprises from free-riding is the key to cut down risks that virtual enterprises may meet. Based on the work of profit sharing in partnerships and the research on revenue sharing in supply chain and joint ventures, we propose a model of the profit and risk sharing contract aimed at coordinating a virtual enterprise composed of n risk-averse member enterprises. We characterize optimal productive efforts, profit sharing and incentive intensity where every member enterprise performs different tasks and contributes different core resources, and demonstrates that improving the productive effort evaluation technique and keeping VEs in medium size are very important to the success of VEs. |
| Description: | The original publication is available at JAIST Press http://www.jaist.ac.jp/library/jaist-press/index.html
IFSR 2005 : Proceedings of the First World Congress of the International Federation for Systems Research : The New Roles of Systems Sciences For a Knowledge-based Society : Nov. 14-17, 2108, Kobe, Japan
Symposium 4, Session 4 : Meta-synthesis and Complex Systems Complex Problem Solving (II) |
| Language: | ENG |
| URI: | https://hdl.handle.net/10119/3898 |
| ISBN: | 4-903092-02-X |
| Appears in Collections: | IFSR 2005
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| 20132.pdf | | 260Kb | Adobe PDF | View/Open |
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