Impact of Utility Function to Service Center Location in Public Service System

Michal Kohani (), Lubos Buzna () and Jaroslav Janacek ()
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Michal Kohani: University of Zilina
Lubos Buzna: University of Zilina
Jaroslav Janacek: University of Zilina

A chapter in Operations Research Proceedings 2012, 2014, pp 129-134 from Springer

Abstract: Abstract Traditional approaches to the public service system design can be seen as a resource allocation problem with a central planner, where social costs are minimized. Even though all tax payers share the costs of the system construction and its operation, not all citizens have the same access to the service. There are two different ways of evaluating the resulting quality of the general system. The utilitarian approach prefers solutions which maximize the system utility. The fair approach, on the other hand, takes into account the preferences of individual users and their rights to have an equal access to the provided services. In this paper we focus on reformulation of the public service system design problem to the utility maximization problem, where both, the system and fair approaches will be studied. We evaluate the impact of the used utility functions on the location of service centres. We compare the distribution of located centres in comparison with other approaches, and we explore its impact on the price of fairness.

Keywords: Utility Function; Social Cost; Service Center; Resource Allocation Problem; Emergency Medical System (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:spr:oprchp:978-3-319-00795-3_19

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DOI: 10.1007/978-3-319-00795-3_19

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