Funding Research in Higher Education Institutions: The Game Theory Approach

Baruch Keren, Yossi Hadad, Yizhaq Minchuk

Research output: Chapter in Book/Report/Conference proceedingChapterpeer-review

Abstract

This chapter presents a unique model, based on game theory, that can help decision-makers in higher education (HE) institutions determine an optimal research budget. The model can then help them decide how to allocate that budget among academic units such as researchers, institutions, and departments. The model considers the management of the institution as a contest organizer and the academic units as contestants that compete with each other to win the contest. The prize of this contest is a desired research budget. The proposed model includes a form of two contestants with different abilities, as well as a form with unlimited (N) contestants with the same abilities. The model enables decision-makers to determine the size of the optimal research budget (the prize), and the optimal distribution mechanism (a contest or a budget division) of that prize among the contestants. To the best of our knowledge, determining the size of the Tullock contest prize according to the contestants’ abilities with comparison to a bargaining model has not previously been studied. This is an application that is new to the HE budget allocation process. The study includes a numerical example that demonstrates the model and its applicability.

Original languageEnglish
Title of host publicationInternational Series in Operations Research and Management Science
PublisherSpringer
Pages303-321
Number of pages19
DOIs
StatePublished - 1 Jan 2021
Externally publishedYes

Publication series

NameInternational Series in Operations Research and Management Science
Volume309
ISSN (Print)0884-8289
ISSN (Electronic)2214-7934

Keywords

  • Academic units
  • Analytical Hierarchical Process (AHP)
  • Budget division
  • Contest
  • Game theory
  • Higher education
  • Research funding

ASJC Scopus subject areas

  • Software
  • Computer Science Applications
  • Strategy and Management
  • Management Science and Operations Research
  • Applied Mathematics

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