IDEAS home Printed from https://ideas.repec.org/p/gra/wpaper/19-03.html
   My bibliography  Save this paper

On how to allocate the fixed cost of transport networks

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 study, we consider different cities located along a tram line. Each city may have one or several stations and information is available about the flow of passengers between any pair of stations. A fixed cost (salaries of the executive staff, repair facilities, or fixed taxes) must be divided among the cities. This cost is independent of the number of passengers and the length of the line. We propose a mathematical model to identify suitable mechanisms for sharing the fixed cost. In the proposed model, we propose, and characterize axiomatically, three rules, which include the uniform split, the proportional allocation and a intermediate situation. The analyzed axioms represent the basic requirements for fairness and elemental properties of stability.

Suggested Citation

  • Teresa Estañ & Natividad Llorca & Ricardo Martínez & Joaquín Sánchez-Soriano, 2019. "On how to allocate the fixed cost of transport networks," ThE Papers 19/03, Department of Economic Theory and Economic History of the University of Granada..
    • Handle: RePEc:gra:wpaper:19/03
    as

    Download full text from publisher

    File URL: http://www.ugr.es/~teoriahe/RePEc/gra/wpaper/thepapers19_03.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Joaquín Sánchez-Soriano & Natividad Llorca & Ana Meca & Elisenda Molina & Manuel Pulido, 2002. "An Integrated Transport System for Alacant's Students. UNIVERCITY," Annals of Operations Research, Springer, vol. 109(1), pages 41-60, January.
    2. Alcalde-Unzu, Jorge & Gómez-Rúa, María & Molis, Elena, 2015. "Sharing the costs of cleaning a river: the Upstream Responsibility rule," Games and Economic Behavior, Elsevier, vol. 90(C), pages 134-150.
    3. Norde, Henk & Fragnelli, Vito & Garcia-Jurado, Ignacio & Patrone, Fioravante & Tijs, Stef, 2002. "Balancedness of infrastructure cost games," European Journal of Operational Research, Elsevier, vol. 136(3), pages 635-654, February.
    4. (*), Anne van den Nouweland & Marco Slikker, 2000. "original papers : Network formation models with costs for establishing links," Review of Economic Design, Springer;Society for Economic Design, vol. 5(3), pages 333-362.
    5. S. C. Littlechild & G. Owen, 1973. "A Simple Expression for the Shapley Value in a Special Case," Management Science, INFORMS, vol. 20(3), pages 370-372, November.
    6. Michael Maschler & Jos Potters & Hans Reijnierse, 2010. "The nucleolus of a standard tree game revisited: a study of its monotonicity and computational properties," International Journal of Game Theory, Springer;Game Theory Society, vol. 39(1), pages 89-104, March.
    7. Sudhölter, Peter & Zarzuelo, José M., 2017. "Characterizations of highway toll pricing methods," European Journal of Operational Research, Elsevier, vol. 260(1), pages 161-170.
    8. William Thomson, 2001. "On the axiomatic method and its recent applications to game theory and resource allocation," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 18(2), pages 327-386.
    9. Bergantiños, G. & Gómez-Rúa, M. & Llorca, N. & Pulido, M. & Sánchez-Soriano, J., 2014. "A new rule for source connection problems," European Journal of Operational Research, Elsevier, vol. 234(3), pages 780-788.
    10. Kuipers, Jeroen & Mosquera, Manuel A. & Zarzuelo, José M., 2013. "Sharing costs in highways: A game theoretic approach," European Journal of Operational Research, Elsevier, vol. 228(1), pages 158-168.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Teresa Estañ & Natividad Llorca & Ricardo Martínez & Joaquín Sánchez-Soriano, 2021. "On how to allocate the fixed cost of transport systems," Annals of Operations Research, Springer, vol. 301(1), pages 81-105, June.
    2. Algaba, Encarnación & Fragnelli, Vito & Llorca, Natividad & Sánchez-Soriano, Joaquin, 2019. "Horizontal cooperation in a multimodal public transport system: The profit allocation problem," European Journal of Operational Research, Elsevier, vol. 275(2), pages 659-665.
    3. 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..
    4. Bergantiños, Gustavo & Martínez, Ricardo, 2014. "Cost allocation in asymmetric trees," European Journal of Operational Research, Elsevier, vol. 237(3), pages 975-987.
    5. Munich, Léa, 2024. "Schedule situations and their cooperative game theoretic representations," European Journal of Operational Research, Elsevier, vol. 316(2), pages 767-778.
    6. Léa Munich, 2023. "Schedule Situations and their Cooperative Game Theoretic Representations," Working Papers 2023-08, CRESE.
    7. Wu, Hao & van den Brink, René & Estévez-Fernández, Arantza, 2024. "Highway toll allocation," Transportation Research Part B: Methodological, Elsevier, vol. 180(C).
    8. Gómez-Rodríguez, Marcos & Davila-Pena, Laura & Casas-Méndez, Balbina, 2024. "Cost allocation problems on highways with grouped users," European Journal of Operational Research, Elsevier, vol. 316(2), pages 667-679.
    9. Hao Wu & Rene van den Brink & Arantza Estevez-Fernandez, 2022. "Highway toll allocation," Tinbergen Institute Discussion Papers 22-036/II, Tinbergen Institute.
    10. G. Bergantiños & J. Vidal-Puga, 2020. "One-way and two-way cost allocation in hub network problems," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 42(1), pages 199-234, March.
    11. Tamas Solymosi & Balazs Sziklai, 2015. "Universal Characterization Sets for the Nucleolus in Balanced Games," CERS-IE WORKING PAPERS 1512, Institute of Economics, Centre for Economic and Regional Studies.
    12. Dan C. Popescu & Philip Kilby, 2020. "Approximation of the Shapley value for the Euclidean travelling salesman game," Annals of Operations Research, Springer, vol. 289(2), pages 341-362, June.
    13. Kevin Techer, 2023. "Hazardous waste transportation: a cost allocation analysis," Working Papers hal-04099139, HAL.
    14. Stefano Moretti & Henk Norde, 2022. "Some new results on generalized additive games," International Journal of Game Theory, Springer;Game Theory Society, vol. 51(1), pages 87-118, March.
    15. Gustavo Bergantiños & Juan D. Moreno-Ternero, 2020. "Sharing the Revenues from Broadcasting Sport Events," Management Science, INFORMS, vol. 66(6), pages 2417-2431, June.
    16. Béal, Sylvain & Ferrières, Sylvain & Rémila, Eric & Solal, Philippe, 2018. "The proportional Shapley value and applications," Games and Economic Behavior, Elsevier, vol. 108(C), pages 93-112.
    17. van Beek, Andries & Groote Schaarsberg, Mirjam & Borm, Peter & Hamers, Herbert & Veneman, Mattijs, 2023. "Cost Allocation in CO2 Transport for CCUS Hubs : A Multi-Actor Perspective," Other publications TiSEM 4f99c444-6676-4887-b7b8-5, Tilburg University, School of Economics and Management.
    18. Gustavo Bergantiños & Juan Vidal-Puga, 2021. "A review of cooperative rules and their associated algorithms for minimum-cost spanning tree problems," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 12(1), pages 73-100, March.
    19. M. Fiestras-Janeiro & Ignacio García-Jurado & Manuel Mosquera, 2011. "Cooperative games and cost allocation problems," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 19(1), pages 1-22, July.
    20. Fatemeh Babaei & Hamidreza Navidi & Stefano Moretti, 2022. "A bankruptcy approach to solve the fixed cost allocation problem in transport systems," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 30(2), pages 332-358, July.

    More about this item

    Keywords

    axiom; cost game; cost sharing; fairness; transport networks.;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gra:wpaper:19/03. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Angel Solano Garcia. (email available below). General contact details of provider: https://edirc.repec.org/data/dtugres.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.