Original scientific paper
https://doi.org/10.1080/1331677X.2019.1651666
Determining optimal meeting frequency: a bargaining solution to improve a poorly functioning PPP industry under budget constraints
Saisomphorn Larhsoukanh
; School of Economics and Management, Southwest Jiaotong University, Sichuan, China
Chengzhang Wang
; School of Economics and Management, Southwest Jiaotong University, Sichuan, China
Abstract
This study uniquely addresses declining business profitability because of a lack of coordinated meetings between the public and private sectors. We determine optimal meeting frequency (i.e., the highest number of regularly scheduled meetings of the Standing Committee of the inter-agency coordination per year at which profit can be maximised) for poorly functioning public–private partnership (PPP) industries (i.e., their average return on assets or ROA<0). The tourism industry in emerging countries such as Laos provides an example of a PPP. Using two-person Nash bargaining theory and given budget constraints, we find that the government should conduct bimonthly meetings to improve PPP industry competitiveness. We believe that our study makes a significant contribution to the literature because few emerging studies use mathematical models to address the problem of public and private sector meeting frequency and collaboration.
Keywords
Meeting frequency (regularly scheduled meetings); inter-agency coordination; public-private partnership; Nash bargaining game; shadow price; Laos
Hrčak ID:
229559
URI
Publication date:
22.1.2019.
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