Highway cost allocation: An application of the theory of nonatomic games

Alberto Castano-Pardo and Alberto Garcia-Diaz

Transportation Research Part A: Policy and Practice, 1995, vol. 29, issue 3, 187-203

Abstract: The purpose of all highway cost allocation procedures is to divide in a fair and rational manner the cost building or rehabilitating highway facilities among the highway's users. This article proposes a solution approach to the highway cost allocation problem based on game theory. In this approach, every passage made on the road is viewed as a player in a game that has a large number of insignificant players. For this reason, it can be assumed to be a nonatomic game. Of all highway costs, pavement costs are the most difficult to allocate on the basis of relative damage caused by the user of a highway. A distinctive feature of the analysis conducted in this article is the consideration of a nonlinear programming model that optimizes the total cost of pavement as the characteristic function of the game. The distribution of pavement construction costs proposed by the Federal Highway Administration is essentially a numerical procedure for obtaining value. A solution to the nonatomic game is presented based on a set of axioms that result in allocations that are desirable for its properties. The solution obtained by the proposed approach is compared to existing highway cost allocation methodologies.

Date: 1995
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/0965-8564(94)00027-8
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:transa:v:29:y:1995:i:3:p:187-203

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/supportfaq.cws_home/regional
https://shop.elsevie ... _01_ooc_1&version=01

Access Statistics for this article

Transportation Research Part A: Policy and Practice is currently edited by John (J.M.) Rose

More articles in Transportation Research Part A: Policy and Practice from Elsevier
Bibliographic data for series maintained by Catherine Liu ().