Abstract.
This paper examines profit sharing in cooperative investments where investors bundle their capital endowments to meet the capital requirements of long term investment projects. Furthermore, investors may reinvest intertemporal gains from existing projects into new projects. Focus is on stable allocation schemes as stability is necessary to sustain the long term cooperation of investors. The paper presents sufficient conditions for the existence of stable profit sharing schemes using linear programming techniques.
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Correspondence to: Anja De Waegenaere
The authors wish to thank two anonymous referees for comments that helped to improve the paper significantly. The research of J. Suijs is made possible by a fellowship of the Royal Netherlands Academy of Arts and Sciences (KNAW).
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De Waegenaere, A., Suijs, J. & Tijs, S. Stable profit sharing in cooperative investments. OR Spectrum 27, 85–93 (2005). https://doi.org/10.1007/s00291-004-0182-6
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DOI: https://doi.org/10.1007/s00291-004-0182-6