In 1998, the West Report on tertiary education considered proposals for changing the proportion of funds given to universities on the basis of two criteria: research and teaching. An article by David Phillips on the consequences of implementing these options, appeared in The Australian newspaper (see West, 1998 & Phillips, 1998). Phillips considered the implications of increasing the total amount allocated to universities for research (called the 'research quantum'). Mathematically, the problem considered by Phillips is one of resource allocation and analysing the changes and their implications when the resource allocation procedure is changed. This paper considers the original problem from a general and mathematical viewpoint, potentially applicable to problems other than the original one considered by Phillips.