Application of Cost Allocation Concepts of Game Theory Approach for Cost Sharing Process

Transmission cost allocation based on cooperative game theory

Game Theory for Cost Allocation in Healthcare

Game theory is a branch of applied mathematics that studies strategic situations in which participants (players) act rationally in order to maximize their returns (payoffs). As such, game theory provides models of rational behavior (decisionmaking) for strategic interactions. Many types of problems that involve decision strategies for cooperating or non-cooperating participants present a fruitf...

transmission cost allocation based on cooperative game theory

Game Theory and Cost Allocation Problems*

Problems of allocating joint costs in a reasonable way arise in many practical situations where people decide to work together to save costs. Cost allocation methods based on game theoretical concepts take into account the strategic aspects of cost allocation situations. We give a survey of cost allocation methods based on the nucleolus and the Shapley value, and introduce also a new one, the s...

Computational Complexity of the Game Theory Approach to Cost Allocation for a Tree

In the game theory approach to the problem of allocating cost, the users of a facility are viewed as players in a cooperative n-person game. It is the nature of cooperative games that the power of each one of the 2"-' possible coalitions is taken into account. Thus, practical problems of allocating cost may be intractable in the game theory approach because of the computational complexity invol...