Profit sharing in collaborative R&D project
Recently, more and more firms / organizations realize the advantages of R&D collaboration. The assurance of fairness in allocating profits plays an important role of the success of collaborative R&D project, but there are a lot of uncertainty factors, e.g. intangible investment, moral hazard problem, free-rider problem and different bargaining power problem as well, which make the profit sharing issue even more complicated. Equal sharing rule is widely used because it is quite convenient and it maintains harmonious collaboration. Proportional sharing principle is used when each partner’s contribution to the collaborative R&D project can be confirmed. The Shapley Value follows the marginal principle that responds to benefit measured by what a collaborator brings to feasible coalitions. The Nucleolus always satisfies the group rationality constraint and assures that each partner is treated persistently.