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

Sylvain Béal, Adriana Navarro-Ramos (), Eric Rémila () and Philippe Solal
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Adriana Navarro-Ramos: GATE Lyon Saint-Étienne - Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne - UL2 - Université Lumière - Lyon 2 - UJM - Université Jean Monnet - Saint-Étienne - EM - EMLyon Business School - CNRS - Centre National de la Recherche Scientifique
Eric Rémila: GATE Lyon Saint-Étienne - Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne - UL2 - Université Lumière - Lyon 2 - UJM - Université Jean Monnet - Saint-Étienne - EM - EMLyon Business School - CNRS - Centre National de la Recherche Scientifique

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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 costallocation 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)
Date: 2023-05
Note: View the original document on HAL open archive server: https://hal.science/hal-04222245v1
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Working Paper: Sharing the cost of hazardous transportation networks and the Priority Shapley value (2023)
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