Resource Allocation Auctions Within Firms

There is growing interest in the use of markets within firms. Proponents have noted that markets are a simple and efficient mechanism for allocating resources in economies in which information is dispersed. In contrast to the use of markets in the broader economy, the efficiency of an internal market is determined in large part by the endogenous contractual incentives provided to the participating, privately informed agents. In this paper, we study the optimal design of managerial incentives when resources are allocated by an internal auction market, as well as the efficiency of the resulting resource allocations. We show that the internal auction market can achieve first-best resource allocations and decisions, but only at an excessive cost in compensation payments. We then identify conditions under which the internal auction market and associated optimal incentive contracts achieve the benchmark second-best outcome as determined using a direct revelation mechanism. The advantage of the auction is that it is easier to implement than the direct revelation mechanism. When the internal auction mechanism is unable to achieve second-best, we characterize the factors that determine the magnitude of the shortfall. Overall, our results speak to the robust performance of relatively simple market mechanisms and associated incentive systems in resolving resource allocation problems within firms

Analysis of Fracture Mechanics Tests on Opalinus Clay

Many studies have recently been conducted to evaluate various mechanical characteristics of the Opalinus Clay (OPA) formation in view of its potential use as the hosting rock for the Swiss nuclear waste repositories. Its sedimentary bedding makes OPA a transversely isotropic rock and its directional mechanical properties need to be measured. This paper reports on an experimental and computational approach that was adopted to define the parallel-to-bedding fracture mechanics (FM) parameters of OPA in Mode-I. OPA cores from Mont Terri Underground Research Laboratory (URL) were submitted to laboratory tests on notched semi-circular specimens under three-point bending (SCB). In these tests, crack propagation is forced along the notch direction. However, the 45° bedding inclination of the specimen axis frequently deviated the crack from the expected direction. An analysis of the SCB tests was performed by means of non-linear FM techniques and the pertinent Mode-I parameters along the bedding were estimate

An experimental and numerical investigation of concrete dam joints

This communication summarises the results of a comprehensive investigation aimed at improving the understanding of the cyclic behaviour of concrete dam joints, covering both experimental and numerical aspects. In the laboratory work, a jointed concrete block is subjected to reversed cyclic slip at imposed normal stress. The specimen is intended to represent a portion of either a lift joint or the dam-foundation interface. Aspects of novelty can be found in the test setup and in the specimen size (90×70×30 cm). The tests performed so far, though limited in number, have allowed to assess and approximately quantify for concrete the characteristic influence of joint roughness on the observed shear strength and dilatancy. A generalised interface model is proposed in order to describe the joint behaviour, including all the phenomena commonly accounted for in mixed mode fracture of cohesive quasi-brittle materials and the effects of surface roughness. This result has been obtained by combining a fracture-mechanics based interface model for concrete with a cyclic one for rock joints. Simulations carried out so far evidence a good qualitative agreement with results available in literatur

Fracture of concrete under variable amplitude fatigue loading

The fracture response of concrete under low-cycle variable amplitude loading at frequencies up to 10 Hz was investigated. The applied loading history, selected to reflect earthquake loads on concrete dams, consisted of a basic sinusoidal oscillation interrupted by occasional spikes. Test results of specimens with different sizes and loading histories are reported. It was determined that the induced damage is both size and loading history-dependent; further, it was found that spikes in the loading history are likely to accelerate crack growth. On the basis of the experimental results, a fracture mechanics-based empirical law for crack propagation under variable amplitude cyclic loading is proposed