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Characterizations of highway toll pricing methods

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  • Sudhölter, Peter
  • Zarzuelo, José M.

Abstract

A highway problem is a cost sharing problem that arises if the common resource is an ordered set of sections with fixed costs such that each agent demands consecutive sections. We provide axiomatizations of the core, the prenucleolus, and the Shapley value on the class of TU games associated with highway problems. However, the simple and intuitive properties employed in the results are exclusively formulated by referring to highway problems rather than games. The main axioms for the core and the nucleolus are consistency properties, while the Shapley value is characterized by requiring that the fee of an agent is determined by the highway problem when truncated to the sections she demands. An alternative characterization is based on the new contraction property. Finally it is shown that the games that are associated with generalized highway problems in which agents may demand non-connected parts are the positive cost games, i.e., nonnegative linear combinations of dual unanimity games.

Suggested Citation

  • Sudhölter, Peter & Zarzuelo, José M., 2017. "Characterizations of highway toll pricing methods," European Journal of Operational Research, Elsevier, vol. 260(1), pages 161-170.
  • Handle: RePEc:eee:ejores:v:260:y:2017:i:1:p:161-170
    DOI: 10.1016/j.ejor.2016.11.051
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    Cited by:

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    2. Algaba, Encarnación & Fragnelli, Vito & Llorca, Natividad & Sánchez-Soriano, Joaquin, 2019. "Horizontal cooperation in a multimodal public transport system: The profit allocation problem," European Journal of Operational Research, Elsevier, vol. 275(2), pages 659-665.
    3. Sanjith Gopalakrishnan & Daniel Granot & Frieda Granot & Greys Sošić & Hailong Cui, 2021. "Incentives and Emission Responsibility Allocation in Supply Chains," Management Science, INFORMS, vol. 67(7), pages 4172-4190, July.
    4. van Beek, Andries & Groote Schaarsberg, Mirjam & Borm, Peter & Hamers, Herbert & Veneman, Mattijs, 2023. "Cost Allocation in CO2 Transport for CCUS Hubs : a Multi-Actor Perspective," Other publications TiSEM 4f99c444-6676-4887-b7b8-5, Tilburg University, School of Economics and Management.
    5. van Beek, Andries, 2023. "Solutions in multi-actor projects with collaboration and strategic incentives," Other publications TiSEM 3739c498-5edb-442f-87d8-c, Tilburg University, School of Economics and Management.
    6. van Beek, Andries & Groote Schaarsberg, Mirjam & Borm, Peter & Hamers, Herbert & Veneman, Mattijs, 2023. "Cost Allocation in CO2 Transport for CCUS Hubs : a Multi-Actor Perspective," Discussion Paper 2023-008, Tilburg University, Center for Economic Research.
    7. Hao Wu & Rene van den Brink & Arantza Estevez-Fernandez, 2022. "Highway toll allocation," Tinbergen Institute Discussion Papers 22-036/II, Tinbergen Institute.
    8. Teresa Estañ & Natividad Llorca & Ricardo Martínez & Joaquín Sánchez-Soriano, 2020. "Manipulability in the cost allocation of transport systems," ThE Papers 20/08, Department of Economic Theory and Economic History of the University of Granada..
    9. Teresa Estañ & Natividad Llorca & Ricardo Martínez & Joaquín Sánchez-Soriano, 2019. "On how to allocate the fixed cost of transport networks," ThE Papers 19/03, Department of Economic Theory and Economic History of the University of Granada..
    10. Teresa Estañ & Natividad Llorca & Ricardo Martínez & Joaquín Sánchez-Soriano, 2021. "On how to allocate the fixed cost of transport systems," Annals of Operations Research, Springer, vol. 301(1), pages 81-105, June.
    11. Kevin Techer, 2023. "Hazardous waste transportation: a cost allocation analysis," Working Papers hal-04099139, HAL.
    12. Léa Munich, 2023. "Schedule Situations and their Cooperative Game Theoretic Representations," Working Papers 2023-08, CRESE.

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