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Compensating local communities for mining transport: A game theoretical analysis

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  • Valencia-Toledo, Alfredo
  • Vidal-Puga, Juan

Abstract

We propose a freight transportation problem to distribute the benefit provided by a corridor to compensate the communities on the route. Such distribution aims to avoid conflicts generated by the maintenance of the corridor or the ore transportation that causes external costs to communities that can block the route, forcing more expensive alternatives. We propose a cooperative game theory solution based on stability and fairness principles. In particular, we present some reasonable properties to characterize a family of core assignment rules for determining compensation to the local communities in the corridor. We illustrate the method with a case study using data from Peru.

Suggested Citation

  • Valencia-Toledo, Alfredo & Vidal-Puga, Juan, 2025. "Compensating local communities for mining transport: A game theoretical analysis," Mathematical Social Sciences, Elsevier, vol. 137(C).
    • Handle: RePEc:eee:matsoc:v:137:y:2025:i:c:s0165489625000290
    DOI: 10.1016/j.mathsocsci.2025.102414
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