Project Networks and Reallocation Externalities

Explore a comprehensive analysis of project networks and reallocation externalities in this 46-minute seminar presented by Juan Camilo Serpa from McGill University at the GERAD Research Center. Delve into the intricate world of infrastructure projects, examining how multiple participants, including agencies, contractors, and subcontractors, simultaneously work on various projects while allocating resources among them. Discover the interconnectedness of seemingly unrelated projects through an extensive mapping of 2.6 million infrastructure projects involving 140,000 participants. Learn how localized disruptions can trigger a domino effect across the network, causing delays and penalties in unrelated projects due to opportunistic resource reallocation. Understand the implications of self-interested behavior and how performance-based contracts can inadvertently exacerbate these externalities. Gain valuable insights into the complex dynamics of project management and resource allocation in large-scale infrastructure networks.