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Sharing the cost of hazardous transportation networks and the Priority Shapley value

Author

Listed:
  • Sylvain Béal

    (Université de Franche-Comté, CRESE, F-25000 Besançon, France)

  • Adriana Navarro-Ramos

    (Université de Saint-Etienne, GATE Lyon Saint-Etienne UMR 5824, F-42023 Saint-Etienne, France)

  • Eric Rémila

    (Université de Saint-Etienne, GATE Lyon Saint-Etienne UMR 5824, F-42023 Saint-Etienne, France)

  • Philippe Solal

    (Université de Saint-Etienne, GATE Lyon Saint-Etienne UMR 5824, F-42023 Saint-Etienne, France)

Abstract

We consider the cost sharing issue resulting from the maintenance of a hazardous waste transportation network represented by a sink tree. The participating agents are located on the nodes of the network and must transport their waste to the sink through costly network portions. We introduce the Liability rule, which is inspired by the principles applied by the courts to settle cost-allocation disputes in the context of hazardous waste. We provide an axiomatic characterization of this rule. Furthermore, we show that the Liability rule coincides with the Priority Shapley value, a new allocation rule on an appropriate class of multi-choice games arising from hazardous waste transportation problems. Finally, we also axiomatize the Priority Shapley value on the full domain of multi-choice games.

Suggested Citation

  • Sylvain Béal & Adriana Navarro-Ramos & Eric Rémila & Philippe Solal, 2023. "Sharing the cost of hazardous transportation networks and the Priority Shapley value," Working Papers 2023-03, CRESE.
    • Handle: RePEc:crb:wpaper:2023-03
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    References listed on IDEAS

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    More about this item

    Keywords

    Hazardous waste; transportation network; Liability rule; Priority Shapley value; multi- choice games;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning

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