One-way and two-way cost allocation in hub network problems

Gustavo Bergantiños and Juan Vidal-Puga

MPRA Paper from University Library of Munich, Germany

Abstract: We consider a cost allocation problem arising from a hub network problem design. Finding an optimal hub network is NP-hard, so we start with a hub network that could be optimal or not. Our main objective is to divide the cost of such network among the nodes. We consider two cases. In the one-way flow case, we assume that the cost paid by a set of nodes depends only on the flow they send to other nodes (including nodes outside the set), but not on the flow they receive from nodes outside. In the two-way flow case, we assume that the cost paid by a set of nodes depends on the flow they send to other nodes(including nodes outside the set) and also on the flow they receive from nodes outside. In both cases, we study the core and the Shapley value of the corresponding cost game.

Keywords: game theory; hub network; cost allocation; core; Shapley value (search for similar items in EconPapers)
JEL-codes: C71 (search for similar items in EconPapers)
Date: 2018-05-15
New Economics Papers: this item is included in nep-gth and nep-net
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https://mpra.ub.uni-muenchen.de/97935/1/hubs.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/98228/1/hubs.pdf revised version (application/pdf)

Related works:
Journal Article: One-way and two-way cost allocation in hub network problems (2020)
Working Paper: One-way and two-way cost allocation in hub network problems (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:97935

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