Resource allocations when projects have ranges of increasing returns
AbstractA fixed budget must be allocated to a finite number of different projects with uncertain outputs. The expected marginal productivity of capital in a project first increases then decreases with the amount of capital invested. Such behavior is common when output is a probability (of escaping infection, succeeding with an R&D projectâ¦). When the total budget is below some threshold, it is invested in a single project. Above this cutoff, the share invested in a project can be discontinuous and non-monotone in the total budget. Above an upper cutoff, all projects receive more capital as the budget increases.
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Bibliographic InfoArticle provided by Springer in its journal Journal of Risk and Uncertainty.
Volume (Year): 37 (2008)
Issue (Month): 1 (August)
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Web page: http://www.springerlink.com/link.asp?id=100299
Other versions of this item:
- Catherine Bobtcheff & Christian Gollier & Richard Zeckhauser, 2008. "Resource allocation when projects have ranges of increasing returns," Journal of Risk and Uncertainty, Springer, vol. 37(1), pages 1-33, August.
- Bobtcheff, Catherine & Gollier, Christian & Zeckhauser, Richard, 2008. "Resource Allocation When Projects Have Ranges of Increasing Returns," Working Paper Series rwp08-024, Harvard University, John F. Kennedy School of Government.
- BOBTCHEFF Catherine & GOLLIER Christian & ZECKHAUSER Richard, 2007. "Resource Allocation when Projects Have Ranges of Increasing Returns," LERNA Working Papers 07.03.224, LERNA, University of Toulouse.
- C60 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - General
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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