Mechanism design of profit distribution for dynamic cooperation

Characteristics of profit distribution for dynamic cooperation have been analyzed from following three aspects: profit that can be distributed, standards for profit distribution and way of how to distribute it. Research has found that proper mechanism of profit distribution can substitute the roles of managerial rules and motivation to some degree and improve the performance of cooperation as well as fruitful outcome. Considering the trait of dynamic cooperation, mechanism of profit distribution which covers the phases of identifying the profit that can be distributed, making principals of distribution and choosing the way of distribution has been proposed. Furthermore, game theory model based on the characteristics of dynamic cooperation has been built to solve the problem of profit distribution in practice.