On analyzing cost allocation problems: Cooperation building structures and order problem representations

John Kleppe, Peter Borm, Ruud Hendrickx, Hans Reijnierse

Research output: Contribution to journalArticleScientificpeer-review

Abstract

To analyze cost allocation problems, this paper identifies associated cooperation building structures, with joint cost functions, and corresponding efficient order problem representations, with individualized cost functions. This paper presents an approach that, when applicable, offers a way not only to adequately model a cost allocation problem by means of a cooperative cost game, but also to construct a core element of such a game by means of a generalized Bird allocation. We apply the approach to both existing and new classes of cost allocation problems related to operational research problems: sequencing situations without initial ordering, maintenance problems, minimum cost spanning tree situations, permutation situations without initial allocation, public congestion network situations, traveling salesman problems, shared taxi problems and traveling repairman problems.
Original languageEnglish
Article number1850007
JournalInternational Game Theory Review
Volume20
DOIs
Publication statusPublished - 2018

Keywords

  • cost allocation problem
  • cooperation building structure
  • order problem representation
  • transferable utility game
  • generalized Bird allocation

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