Name
Abstract | ||
|---|---|---|
Consider n firms (agents) located at a river, indexed by \(1, \dots , n\) from upstream to downstream. The pollution generated by these firms induce cleaning costs \(c_1, \dots , c_n\), where \(c_i\) is the cost for cleaning the water in region i (according to the local environmental standards).
The corresponding cost allocation problem is highly interesting both in theory and practice.
Among the most prominent allocation schemes are the so-called Local Responsibility and Upstream Equal Sharing. The first one allocates simply each local cost \(c_i\) to the corresponding firm i. The second distributes each \(c_i\) equally among firms \(1, \dots , i\). We propose and characterize a dynamic scheme which, given a particular order of arrival, allocates the current total cost among the firms that have arrived so far. The corresponding expected allocation (w.r.t. a random arrival order) turns out to be a convex combination of the two schemes above.
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Year | DOI | Venue |
|---|---|---|
2019 | 10.1007/s00186-019-00658-w | Math. Meth. of OR |
Keywords | Field | DocType |
Cost allocation, Local Responsibility Sharing, Upstream Equal Sharing, Axiomatization | Discrete mathematics,Mathematical optimization,Convex combination,Cost allocation,Total cost,Mathematics | Journal |
Volume | Issue | ISSN |
89 | 1 | 1432-5217 |
Citations | PageRank | References |
0 | 0.34 | 6 |
Authors | ||
3 | ||
Name | Order | Citations | PageRank |
|---|---|---|---|
| Panfei Sun | 1 | 2 | 2.12 |
| Dongshuang Hou | 2 | 11 | 6.27 |
| Hao Sun | 3 | 31 | 10.18 |