IDEAS home Printed from https://ideas.repec.org/p/wis/wpaper/1308.html
   My bibliography  Save this paper

An Axiomatic Approach to the Airline Emission Fees Problem

Author

Listed:
  • Yuntong Wang

    (Department of Economics, University of Windsor)

Abstract

An airline lands in a number of airports in a region. An airport serves a number of airlines. Each airport charges a given amount of emission fees to those airlines using the airport. The total emission fees from all airports in the region must be shared among all airlines. We propose an axiomatic approach to this airline emission fees problem. We suggest a sharing rule called the Decomposition rule that is based on a few simple axioms. The Decomposition rule coincides with the Shapley value of the game associated with the problem and is shown in the core. Thus, no alliance of airlines can reduce their emission fees by forming an independent coalition. On the other hand, we also show that the Decomposition rule is split-proof. In other words, no airline has an incentive to split into two or more airlines.

Suggested Citation

  • Yuntong Wang, 2013. "An Axiomatic Approach to the Airline Emission Fees Problem," Working Papers 1308, University of Windsor, Department of Economics.
    • Handle: RePEc:wis:wpaper:1308
    as

    Download full text from publisher

    File URL: http://web2.uwindsor.ca/economics/RePEc/wis/pdf/1308.pdf
    File Function: First version, 2013
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Yves Sprumont, 2005. "On the Discrete Version of the Aumann-Shapley Cost-Sharing Method," Econometrica, Econometric Society, vol. 73(5), pages 1693-1712, September.
    2. Moulin, Herve, 2002. "Axiomatic cost and surplus sharing," Handbook of Social Choice and Welfare, in: K. J. Arrow & A. K. Sen & K. Suzumura (ed.), Handbook of Social Choice and Welfare, edition 1, volume 1, chapter 6, pages 289-357, Elsevier.
    3. Hougaard, Jens Leth & Moulin, Hervé, 2014. "Sharing the cost of redundant items," Games and Economic Behavior, Elsevier, vol. 87(C), pages 339-352.
    4. 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.
    5. Moulin, Herve & Laigret, Francois, 2011. "Equal-need sharing of a network under connectivity constraints," Games and Economic Behavior, Elsevier, vol. 72(1), pages 314-320, May.
    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. Debing Ni & Yuntong Wang, 2013. "Additive cost sharing on a tree," Working Papers 1307, University of Windsor, Department of Economics.
    2. Juarez, Ruben & Ko, Chiu Yu & Xue, Jingyi, 2018. "Sharing sequential values in a network," Journal of Economic Theory, Elsevier, vol. 177(C), pages 734-779.
    3. Hervé Moulin & Yves Sprumont, 2007. "Fair allocation of production externalities : recent results," Revue d'économie politique, Dalloz, vol. 117(1), pages 7-36.
    4. Munich, Léa, 2024. "Schedule situations and their cooperative game theoretic representations," European Journal of Operational Research, Elsevier, vol. 316(2), pages 767-778.
    5. Léa Munich, 2023. "Schedule Situations and their Cooperative Game Theoretic Representations," Working Papers 2023-08, CRESE.
    6. Yuntong Wang, 2016. "Revenue Sharing in Airline Alliance Networks," Working Papers 1605, University of Windsor, Department of Economics.
    7. Bergantiños, Gustavo & González-Díaz, Julio & González-Rueda, Ángel M. & P. Fernández de Córdoba, María, 2017. "Loss allocation in energy transmission networks," Games and Economic Behavior, Elsevier, vol. 102(C), pages 69-97.
    8. Gildas Sédry Fopa & Issofa Moyouwou & Joseph Siani, 2022. "Axiomatization of the counting rule for cost-sharing with possibly redundant items," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 58(3), pages 567-587, April.
    9. Alfredo Valencia-Toledo & Juan Vidal-Puga, 2020. "Reassignment-proof rules for land rental problems," International Journal of Game Theory, Springer;Game Theory Society, vol. 49(1), pages 173-193, March.
    10. Hougaard, Jens Leth & Moulin, Hervé, 2014. "Sharing the cost of redundant items," Games and Economic Behavior, Elsevier, vol. 87(C), pages 339-352.
    11. Biung-Ghi Ju & Juan Moreno-Ternero, 2011. "Progressive and merging-proof taxation," International Journal of Game Theory, Springer;Game Theory Society, vol. 40(1), pages 43-62, February.
    12. Valencia-Toledo, Alfredo & Vidal-Puga, Juan, 2015. "Non-manipulable rules for land rental problems," MPRA Paper 67334, University Library of Munich, Germany.
    13. 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.
    14. Baomin Dong & Debing Ni & Yuntong Wang, 2012. "Sharing a Polluted River Network," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 53(3), pages 367-387, November.
    15. Jens Leth Hougaard & Hervé Moulin, 2018. "Sharing the cost of risky projects," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 65(3), pages 663-679, May.
    16. Louis de Mesnard, 2015. "The three wives problem and Shapley value," Post-Print hal-01091714, HAL.
    17. Biung-Ghi Ju & Juan D. Moreno-Ternero, 2006. "Progressivity, Inequality Reduction, and Merging-Proofness in Taxation," WORKING PAPERS SERIES IN THEORETICAL AND APPLIED ECONOMICS 200603, University of Kansas, Department of Economics, revised Feb 2006.
    18. Andreas Darmann & Christian Klamler, 2014. "Knapsack cost sharing," Review of Economic Design, Springer;Society for Economic Design, vol. 18(3), pages 219-241, September.
    19. Jens Gudmundsson & Jens Leth Hougaard & Chiu Yu Ko, 2020. "Sharing sequentially triggered losses," IFRO Working Paper 2020/05, University of Copenhagen, Department of Food and Resource Economics.
    20. Eric Bahel, 2011. "The implications of the ranking axiom for discrete cost sharing methods," International Journal of Game Theory, Springer;Game Theory Society, vol. 40(3), pages 551-589, August.

    More about this item

    Keywords

    Airline emission fees; Shapley value; core; split-proofness.;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • D62 - Microeconomics - - Welfare Economics - - - Externalities

    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:wis:wpaper:1308. 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: Christian Trudeau (email available below). General contact details of provider: https://edirc.repec.org/data/dwindca.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.