Research Article | OPEN ACCESS
Application of Cost Allocation Concepts of Game Theory Approach for Cost Sharing Process
Mojtaba Valinejad Shoubi, Azin Shakiba Barough and Omidreza Amirsoleimani
Faculty of Civil Engineering, University Technology Malaysia (UTM), Skudai, Malaysia
Research Journal of Applied Sciences, Engineering and Technology 2013 12:3457-3464
Received: November 27, 2012 | Accepted: December 17, 2012 | Published: April 10, 2013
Abstract
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.
Keywords:
Cost allocation, cooperative game theory approach, proportional distribution, SCRB method, the Shapley Value method, the nucleolus method,
Competing interests
The authors have no competing interests.
Open Access Policy
This article is distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if changes were made.
Copyright
The authors have no competing interests.
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ISSN (Online): 2040-7467
ISSN (Print): 2040-7459 |
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