Using cooperative game theory to determine profit distribution in IPD projects

IPD (Integrated Project Delivery) mode is regarded as an effective project delivery method that could achieve the consensus project goals by a collaborative team. However, the number of projects using IPD remains small, partly because of the lack of a fair incentive scheme. The purpose of this paper...

Full description

Bibliographic Details
Main Authors: Teng, Y., Li, X., Wu, Peng, Wang, X.
Format: Journal Article
Published: Taylor & Francis 2017
Online Access:http://hdl.handle.net/20.500.11937/56717
_version_ 1848759921406902272
author Teng, Y.
Li, X.
Wu, Peng
Wang, X.
author_facet Teng, Y.
Li, X.
Wu, Peng
Wang, X.
author_sort Teng, Y.
building Curtin Institutional Repository
collection Online Access
description IPD (Integrated Project Delivery) mode is regarded as an effective project delivery method that could achieve the consensus project goals by a collaborative team. However, the number of projects using IPD remains small, partly because of the lack of a fair incentive scheme. The purpose of this paper is to develop a fair profit distribution scheme among stakeholders of IPD projects. This study uses cooperative game theory as the method for analyzing profit distribution among the designer, construction contractor, owner and BIM consultant. The Shapley value is used as the solution to the cooperative game theory because it can assess the marginal contribution of each stakeholder to the coalition. In addition, fuzzy comprehensive evaluation (FCE) and analytic hierarchy process (AHP) are used to assess the risk levels of each stakeholder to modify the profit distribution based on the marginal contribution. A modified Shapley value model, which includes four categories of risk factors, i.e. operation, economic, profit and market risks, was established in this study. The results show that the modified Shapley value can help establish a fair profit distribution scheme for the IPD projects. Practitioners are also encouraged to focus on information sharing to reach the full potential of IPD.
first_indexed 2025-11-14T10:07:34Z
format Journal Article
id curtin-20.500.11937-56717
institution Curtin University Malaysia
institution_category Local University
last_indexed 2025-11-14T10:07:34Z
publishDate 2017
publisher Taylor & Francis
recordtype eprints
repository_type Digital Repository
spelling curtin-20.500.11937-567172019-02-04T03:15:27Z Using cooperative game theory to determine profit distribution in IPD projects Teng, Y. Li, X. Wu, Peng Wang, X. IPD (Integrated Project Delivery) mode is regarded as an effective project delivery method that could achieve the consensus project goals by a collaborative team. However, the number of projects using IPD remains small, partly because of the lack of a fair incentive scheme. The purpose of this paper is to develop a fair profit distribution scheme among stakeholders of IPD projects. This study uses cooperative game theory as the method for analyzing profit distribution among the designer, construction contractor, owner and BIM consultant. The Shapley value is used as the solution to the cooperative game theory because it can assess the marginal contribution of each stakeholder to the coalition. In addition, fuzzy comprehensive evaluation (FCE) and analytic hierarchy process (AHP) are used to assess the risk levels of each stakeholder to modify the profit distribution based on the marginal contribution. A modified Shapley value model, which includes four categories of risk factors, i.e. operation, economic, profit and market risks, was established in this study. The results show that the modified Shapley value can help establish a fair profit distribution scheme for the IPD projects. Practitioners are also encouraged to focus on information sharing to reach the full potential of IPD. 2017 Journal Article http://hdl.handle.net/20.500.11937/56717 10.1080/15623599.2017.1358075 Taylor & Francis restricted
spellingShingle Teng, Y.
Li, X.
Wu, Peng
Wang, X.
Using cooperative game theory to determine profit distribution in IPD projects
title Using cooperative game theory to determine profit distribution in IPD projects
title_full Using cooperative game theory to determine profit distribution in IPD projects
title_fullStr Using cooperative game theory to determine profit distribution in IPD projects
title_full_unstemmed Using cooperative game theory to determine profit distribution in IPD projects
title_short Using cooperative game theory to determine profit distribution in IPD projects
title_sort using cooperative game theory to determine profit distribution in ipd projects
url http://hdl.handle.net/20.500.11937/56717