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 Subject: "Allocating Bonus Based On Balance" Previous Topic | Next Topic
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simpsonn
Charter Member
Jan-04-01, 10:55 AM (EST)

"Allocating Bonus Based On Balance"

 I have a problem where I want to allocate a bonus to one of four parties in ratio to their existing balance (which can be positive or negative). If I used their balance over the total I would get wild results. How can I pro-rate this bonus based on existing balances ?

alexb
Charter Member
672 posts
Jan-04-01, 11:05 AM (EST)

1. "RE: Allocating Bonus Based On Balance"
In response to message #0

 >I have a problem where I >want to allocate a bonus >to one of four parties To one of four perties? Just one? If so, you do not have a problem, right?So, I assume you want to reward each or several parties.>in ratio to their existing >balance (which can be positive >or negative). If I >used their balance over the >total I would get wild >results. How can I >pro-rate this bonus based on >existing balances ? You have to devise a policy. There's no single optimal solution. What is the meaning of having a negative balance? Is a party with a negative balance a good customer. Do you benefit more from a customer with a negative balance or that with a positive balance? What kind of behavior would you like to encourage?For every policy one can design some bonus distribution strategy, but a policy should come first.Best,Alexander Bogomolny

Neil Simpson (Guest)
guest
Jan-08-01, 07:56 AM (EST)

2. "RE: Allocating Bonus Based On Balance"
In response to message #1

 Alexander,Thanks for your reply. I thought this was the case, but wanted to check there was no definitive way of doing this before discussing a policy decision.Thanks,Neil.