Operations Research, Systems Engineering and Industrial Engineering Commons^™

On Proportionate And Truthful International Alliance Contributions: An Analysis Of Incentive Compatible Cost Sharing Mechanisms To Burden Sharing, William N. Caballero

Theses and Dissertations

Burden sharing within an international alliance is a contentious topic, especially in the current geopolitical environment, that in practice is generally imposed by a central authority's perception of its members' abilities to contribute. Instead, we propose a cost sharing mechanism such that burden shares are allocated to nations based on their honest declarations of the alliance's worth. Specifically, we develop a set of multiobjective nonlinear optimization problem formulations that respectively impose Bayesian Incentive Compatible (BIC), Strategyproof (SP), and Group Strategyproof (GSP) mechanisms based on probabilistic inspection efforts and deception penalties that are budget balanced and in the core. Any feasible …