Game Theory and Cost Allocation Problems
AbstractProblems of allocating joint costs in a reasonable way arise in many practical situations where people decide to work together to save costs. Cost allocation methods based on game theoretical concepts take into account the strategic aspects of cost allocation situations. We give a survey of cost allocation methods based on the nucleolus and the Shapley value, and introduce also a new one, the so-called cost gap allocation method which is based on the \tau -value. It is shown that for some large subclasses of cost allocation problems this new cost allocation method coincides with old separable cost methods proposed in the thirties by the Tennessee Valley Authority and also with the separable costs-remaining benefits (SCRB) method. Properties of this cost gap allocation method are also treated.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by INFORMS in its journal Management Science.
Volume (Year): 32 (1986)
Issue (Month): 8 (August)
cost allocation method;
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Salant, David J, 2007. "Formulas for fair, reasonable and non-discriminatory royalty determination," MPRA Paper 8569, University Library of Munich, Germany.
- Norde, Henk & Fragnelli, Vito & Garcia-Jurado, Ignacio & Patrone, Fioravante & Tijs, Stef, 2002.
"Balancedness of infrastructure cost games,"
European Journal of Operational Research,
Elsevier, vol. 136(3), pages 635-654, February.
- Tijs, S.H. & BrÃ¢nzei, R., 2004. "Cases in Cooperation and Cutting the Cake," Discussion Paper 2004-108, Tilburg University, Center for Economic Research.
- Koster, Maurice & Tijs, Stef & Borm, Peter, 1998.
"Serial cost sharing methods for multi-commodity situations,"
Mathematical Social Sciences,
Elsevier, vol. 36(3), pages 229-242, December.
- Koster, M.A.L. & Tijs, S.H. & Borm, P.E.M., 1998. "Serial cost sharing methods for multi-commodity situations," Open Access publications from Tilburg University urn:nbn:nl:ui:12-78039, Tilburg University.
- Massol, Olivier & Tchung-Ming, Stéphane, 2010.
"Cooperation among liquefied natural gas suppliers: Is rationalization the sole objective?,"
Elsevier, vol. 32(4), pages 933-947, July.
- Casas-Mendez, Balbina & Garcia-Jurado, Ignacio & van den Nouweland, Anne & Vazquez-Brage, Margarita, 2003. "An extension of the [tau]-value to games with coalition structures," European Journal of Operational Research, Elsevier, vol. 148(3), pages 494-513, August.
- Castano-Pardo, Alberto & Garcia-Diaz, Alberto, 1995. "Highway cost allocation: An application of the theory of nonatomic games," Transportation Research Part A: Policy and Practice, Elsevier, vol. 29(3), pages 187-203, May.
- Koster, M.A.L., 1998. "Multi-Service Serial Cost Sharing: A Characterization of the Moulin-Shenker Rule," Discussion Paper 1998-06, Tilburg University, Center for Economic Research.
- Alparslan-Gok, S.Z. & BrÃ¢nzei, R. & Tijs, S.H., 2008. "Cooperative Interval Games Arising from Airport Situations with Interval Data," Discussion Paper 2008-57, Tilburg University, Center for Economic Research.
- Grahn-Voorneveld, Sofia, 2011. "Sharing costs in Swedish road ownership associations," Working papers in Transport Economics 2011:6, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
- Brânzei, R. & Ferrari, G. & Fragnelli, V. & Tijs, S.H., 2002.
"Two approaches to the problem of sharing delay costs in joint projects,"
Open Access publications from Tilburg University
urn:nbn:nl:ui:12-91324, Tilburg University.
- BrÃ¢nzei, R. & Ferrari, G. & Fragnelli, V. & Tijs, S.H., 2001. "Two Approaches to the Problem of Sharing Delay Costs in Joint Projects," Discussion Paper 2001-22, Tilburg University, Center for Economic Research.
- VÃ¡squez-Brage, M. & Nouweland, C.G.A.M. van den & GarcÃa-Jurado, I., 1995. "Owen's coalitional value and aircraft landing fees," Discussion Paper 1995-104, Tilburg University, Center for Economic Research.
- Fragnelli, Vito & Garcia-Jurado, Ignacio & Mendez-Naya, Luciano, 2004. "A note on bus games," Economics Letters, Elsevier, vol. 82(1), pages 99-106, January.
- Frisk, Mikael & Göthe-Lundgren, Maud & Jörnsten, Kurt & Rönnqvist, Mikael, 2006. "Cost allocation in collaborative forest transportation," Discussion Papers 2006/15, Department of Finance and Management Science, Norwegian School of Economics.
- Carmen Herrero Blanco & Paula González, 2001. "Optimal Sharing Of Surgical Costs In The Presence Of Queues," Working Papers. Serie AD 2001-27, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mirko Janc).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.