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Manipulability in the cost allocation of transport systems

Author

Listed:
  • Teresa Estañ

    (Centro de Investigación Operativa (CIO), Universidad Miguel Hernández de Elche.)

  • Natividad Llorca

    (Centro de Investigación Operativa (CIO), Universidad Miguel Hernández de Elche.)

  • Ricardo Martínez

    (Department of Economic Theory and Economic History, University of Granada.)

  • Joaquín Sánchez-Soriano

    (Centro de Investigación Operativa (CIO), Universidad Miguel Hernández de Elche..)

Abstract

In this work we study the allocation of the maintenance cost of a tram line that goes across several cities. Each city may have one or several stations. Information about the flow of passengers between any pair of stations is available. We particularly focus on the distribution of the fixed part of the cost (salaries of the executive staff, repair facilities, or fixed taxes). As our main finding, we obtain that the cost must be allocated proportionally to the number of stations, as long as we require some conditions on fairness and non-manipulability.

Suggested Citation

  • 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..
    • Handle: RePEc:gra:wpaper:20/08
    as

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    File URL: http://www.ugr.es/~teoriahe/RePEc/gra/wpaper/thepapers20_08.pdf
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    References listed on IDEAS

    as
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    Keywords

    axiom; cost sharing; fairness; non-manipulability; proportionality.;
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