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

Sylvain Béal, Adriana Navarro-Ramos (), Eric Rémila () and Philippe Solal
Additional contact information
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

No 2023-03, Working Papers from CRESE

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.

Keywords: Hazardous waste; transportation network; Liability rule; Priority Shapley value; multi- choice games (search for similar items in EconPapers)
JEL-codes: C71 Q53 R42 (search for similar items in EconPapers)
Pages: 44 pages
Date: 2023-09
New Economics Papers: this item is included in nep-dcm, nep-env, nep-gth and nep-net
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Working Paper: Sharing the cost of hazardous transportation networks and the Priority Shapley value (2023)
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Persistent link: https://EconPapers.repec.org/RePEc:crb:wpaper:2023-03

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