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2013 (Vol. 5, Issue: 12)
Article Information:

Application of Cost Allocation Concepts of Game Theory Approach for Cost Sharing Process

Mojtaba Valinejad Shoubi, Azin Shakiba Barough and Omidreza Amirsoleimani
Corresponding Author:  Mojtaba Valinejad Shoubi 

Key words:  Cost allocation, cooperative game theory approach, proportional distribution, SCRB method, the Shapley Value method, the nucleolus method,
Vol. 5 , (12): 3457-3464
Submitted Accepted Published
November 27,2012 December 17, 2012 April 10, 2013

Dissatisfaction among involved parties regarding the ways of cost allocation is ordinary in the joint ventures, since each party attempts to get more interest caused by making the coalition. Various cost allocation methods such as proportional methods, some methods in cooperative game theory approach and etc have been used for the purpose of cost sharing in the joint projects. In this study the Nucleolus, Shapley value and SCRB as the cost sharing concepts in game theory approach have been used to investigate their effectiveness in fairly joint cost allocation between parties involved in constructing the joint water supply system. Then the results derived from these methods have been compared with the results of the traditional proportional to population and demand methods. The results indicated that the proportional methods may not lead to a fairly cost allocation while the Nucleolus, SCRB and the Shapley value methods can establish adequate incentive for cooperation.
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  Cite this Reference:
Mojtaba Valinejad Shoubi, Azin Shakiba Barough and Omidreza Amirsoleimani, 2013. Application of Cost Allocation Concepts of Game Theory Approach for Cost Sharing Process.  Research Journal of Applied Sciences, Engineering and Technology, 5(12): 3457-3464.
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ISSN (Online):  2040-7467
ISSN (Print):   2040-7459
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