Highway cost allocation: An application of the theory of nonatomic games
The purpose of all highway cost allocation procedures is to divide in a fair and rational manner the cost building or rehabilitating highway facilities among the highway's users. This article proposes a solution approach to the highway cost allocation problem based on game theory. In this approach, every passage made on the road is viewed as a player in a game that has a large number of insignificant players. For this reason, it can be assumed to be a nonatomic game. Of all highway costs, pavement costs are the most difficult to allocate on the basis of relative damage caused by the user of a highway. A distinctive feature of the analysis conducted in this article is the consideration of a nonlinear programming model that optimizes the total cost of pavement as the characteristic function of the game. The distribution of pavement construction costs proposed by the Federal Highway Administration is essentially a numerical procedure for obtaining value. A solution to the nonatomic game is presented based on a set of axioms that result in allocations that are desirable for its properties. The solution obtained by the proposed approach is compared to existing highway cost allocation methodologies.
If 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 29 (1995)
Issue (Month): 3 (May)
|Contact details of provider:|| Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/547/description#description|
|Order Information:|| Postal: http://www.elsevier.com/wps/find/supportfaq.cws_home/regional|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Tijs, S.H. & Driessen, T.S.H., 1986. "Game theory and cost allocation problems," Other publications TiSEM 376c24c5-c95d-4d29-96b6-4, Tilburg University, School of Economics and Management.
- Small, Kenneth A & Winston, Clifford, 1988. "Optimal Highway Durability," American Economic Review, American Economic Association, vol. 78(3), pages 560-69, June.
- Hendrickson, Chris & Kane, Anthony, 1983. "Cost allocation by uniform traffic removal-- Theoretical discussion and example highway cost applications," Transportation Research Part B: Methodological, Elsevier, vol. 17(4), pages 265-274, August.
- S. H. Tijs & T. S. H. Driessen, 1986. "Game Theory and Cost Allocation Problems," Management Science, INFORMS, vol. 32(8), pages 1015-1028, August.
When requesting a correction, please mention this item's handle: RePEc:eee:transa:v:29:y:1995:i:3:p:187-203. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
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.