An Airport Is in the Process of Implementing a New

question 67

Essay

An airport is in the process of implementing a new baggage claim system that tags each passenger's baggage with RFID. Readers are installed around the airport to track bags and see that the baggage is delivered to the right plane or the right carrousel. The airport is considering different funding models to see if the airlines, the airport or the passengers will be charged. Use the three funding models to explain how this new IT could be funded.

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Definitions:

Endowment Contribution

A donation made to an institution or organization with the stipulation that it be invested and the principal remain intact, while the investment income can be used for organizational purposes.

Restricted Contribution

Funds given to an organization with stipulations on their usage, requiring the funds to be spent in certain ways or restricted to specific purposes.

Unrestricted Contribution

refers to donations or contributions made to a non-profit organization without any conditions, allowing the organization to use the funds wherever they are most needed.

Collective Goods

Also known as public goods, these are commodities or services that provide benefits to all members of a society and are not depleted by individual use.