A quadratic programming model for fair resource allocation

Abstract

In collaborative projects, traditional resource allocation methods often rely on company-assigned contribution rates, which can be subjective and lead to unfair outcomes. To address this, we propose a quadratic programming model that integrates participants’ self-reported rankings of their contributions across projects with company evaluations. The model aims to minimize deviations from company-assigned rates while ensuring consistency with participants’ perceived contribution rankings. Extensive simulations demonstrate that the proposed method reduces allocation errors by an average of 50.8% compared to the traditional approach and 21.4% against the method considering only individual estimation tendencies. Additionally, the average loss reduction in individual resource allocation ranges from 40% to 70% compared to the traditional method and 10% to 50% against the estimation-based method, with our approach outperforming both. Sensitivity analyses further reveal the model’s robustness and its particular value in flawed systems; the error is reduced by approximately 75% in scenarios where company evaluations are highly inaccurate. While its effectiveness is affected by factors such as team size variability and self-assessment errors, the approach consistently provides more equitable allocation of resources that better reflects actual individual contributions, offering valuable insights for improving fairness in team projects.