CostShare

Cost-Sharing-Problem

Description

 

The cost sharing problem is a kind of game, in which the costs of an common infrastructure among different members of an organization or a cooperation is partitioned. The requirements of such cost allocation are efficiency, equity, and incentives. Cooperation can reduce the expenses, but cooperation can only occur if all parties can agree, how much everyone must pay. The question of the project cost sharing is, how the common costs of a cooperation are allocated fairly to the members?

The cooperative game theory offers the suitable tools for the investigation of this question. We consider several concepts from the cooperative game theory, for example, the core, the kernel, the nucleolus or the Shapley value.

  Further information is available in the detailed project description.

Contact

  Nam Dung Hoang

Members

  Martin Grötschel
Nam Dung Hoang

Funding

  ZIB (ZIB scholarship)

Duration

  04/2006 - 12/2010