Royalty analysis for BOT projects based on the negotiation viewpoint

Author

Kang, Chao-Chung ; Feng, Cheng-Min ; Kuo, Chiu-Yen

Author_Institution

Dept. of Bus. Adm., Providence Univ., Taichung Hsien, Taiwan

fYear

2009

fDate

8-11 Dec. 2009

Firstpage

1820

Lastpage

1824

Abstract

This study constructs three royalty negotiation models, including the lump-sum royalty, operational revenue-based royalty, and operational output-based royalty, using the bi-level programming approach. In addition, this paper also develops the iterative algorithm for bi-level programming problem for the government and the private sector. A number of factors were incorporated into this algorithm including concession rate, time value discount rate, learning rate and number of negotiations.

Keywords

finance; iterative methods; programming; BOT projects; bi-level programming approach; build operate and transfer project; concession rate; iterative algorithm; lump-sum royalty; negotiation; operational output-based royalty; operational revenue-based royalty; Computational modeling; Contracts; Game theory; Government; Investments; Iterative algorithms; Mathematical model; Mathematical programming; Road transportation; Traffic control; BOT; bi-level programming; negotiation; royalty;

fLanguage

English

Publisher

ieee

Conference_Titel

Industrial Engineering and Engineering Management, 2009. IEEM 2009. IEEE International Conference on

Conference_Location

Hong Kong

Print_ISBN

978-1-4244-4869-2

Electronic_ISBN

978-1-4244-4870-8

Type

conf

DOI

10.1109/IEEM.2009.5373178

Filename

5373178