Modeling Public–Private Partnerships in Disaster Management via Centralized and Decentralized Models

Abstract

T he objective of this paper is to help both public and private sectors make better decisions in defensive resource allocation through public and private partnerships (PPPs). In this paper, efficient PPPs are studied with regard to disaster preparedness using a decentralized model (sequential game where the public sector is the first mover) and a centralized model. This paper identifies the best public investment policies by evaluating the effectiveness of incentive provisions based on the various private strategic responses. This paper also provides insights into understanding (a) how to construct optimal public and private partnerships and (b) whether, when, and to what extent public and private investments in disaster preparedness could form better PPPs. We study the conditions of the private and public sectors' allocation strategies when they are strategic complements or substitutes. We find that the private sector that has a higher target valuation or lives in more risky areas invests more and has higher potential to partner with the public sector. We also compare the decentralized model results with the results of the centralized model to study the efficiency of the PPPs and find that the results are similar when the target valuation or the probability of disasters is small.

Public-Private-People Partnerships (4P) for Improving the Response to COVID-19 in Iran

“…It sometimes reveals the difficulties faced by the government in allocating available resources, 44 meaning that it fails to allocate the resources properly due to the inefficiency of the system. 44 In addition, some studies have suggested that the government's inattention to disaster management had been partially offset by greater public participation. [45][46][47] There are different studies about 3P in Iran, especially about the health sector.…”

“…Different studies suggest that the contribution of communities and people in anticipating risks, limiting risk effects, and accelerating recovery after a disaster is vital. 43,44 Of course, public sectors asking for help from private sectors and for people to respond does not necessarily indicate the inability of the government or lack of resources to respond. It sometimes reveals the difficulties faced by the government in allocating available resources, 44 meaning that it fails to allocate the resources properly due to the inefficiency of the system.…”

“…43,44 Of course, public sectors asking for help from private sectors and for people to respond does not necessarily indicate the inability of the government or lack of resources to respond. It sometimes reveals the difficulties faced by the government in allocating available resources, 44 meaning that it fails to allocate the resources properly due to the inefficiency of the system. 44 In addition, some studies have suggested that the government's inattention to disaster management had been partially offset by greater public participation.…”

Game-theoretic Modeling of Pre-disaster Relocation

“…Rather than subsidies, they consider the effects of taxation, and note that "Taxation can…ameliorate companies' incentive to free ride on governments' provision of safety efforts" (Hausken and Zhuang, 2016). Of this work, Guan and Zhuang (2015) is closest in nature to ours, but they focus on differences in the damage levels experienced by public and private players, not differences in discount rates.…”

Special Economic Zone as a Local Area of Public-Private Parthership Implementation

“…Theoretical and practical aspects of PPP mechanism and its role in the modernization of the economy are reflected in the works of several scientific researches (Abe, 2013;Chan, 2014;Emek, 2015;Guan, 2015;Woodson, 2015;Theodoropoulos and Tassopoulos 2014a;2014b andTkacheva et al, 2016).…”