TY - JOUR
T1 - Cost allocation rules for elastic single-attribute situations
AU - Karsten, F.J.P.
AU - Slikker, M.
AU - Borm, P.E.M.
PY - 2017/6/1
Y1 - 2017/6/1
N2 - Many cooperative games, especially ones stemming from resource pooling in queueing or inventory systems, are based on situations in which each player is associated with a single attribute (a real number representing, say, a demand) and in which the cost to optimally serve any sum of attributes is described by an elastic function (which means that the per-demand cost is non-increasing in the total demand served). For this class of situations, we introduce and analyze several cost allocation rules: the proportional rule, the serial cost sharing rule, the benefit-proportional rule, and various Shapley-esque rules. We study their appeal with regard to fairness criteria such as coalitional rationality, benefit ordering, and relaxations thereof. After showing the impossibility of combining coalitional rationality and benefit ordering, we show for each of the cost allocation rules which fairness criteria it satisfies.
AB - Many cooperative games, especially ones stemming from resource pooling in queueing or inventory systems, are based on situations in which each player is associated with a single attribute (a real number representing, say, a demand) and in which the cost to optimally serve any sum of attributes is described by an elastic function (which means that the per-demand cost is non-increasing in the total demand served). For this class of situations, we introduce and analyze several cost allocation rules: the proportional rule, the serial cost sharing rule, the benefit-proportional rule, and various Shapley-esque rules. We study their appeal with regard to fairness criteria such as coalitional rationality, benefit ordering, and relaxations thereof. After showing the impossibility of combining coalitional rationality and benefit ordering, we show for each of the cost allocation rules which fairness criteria it satisfies.
KW - convexity
KW - cooperative games
KW - resource pooling
UR - http://www.scopus.com/inward/record.url?scp=85029003523&partnerID=8YFLogxK
U2 - 10.1002/nav.21749
DO - 10.1002/nav.21749
M3 - Article
AN - SCOPUS:85029003523
VL - 64
SP - 271
EP - 286
JO - Naval Research Logistics
JF - Naval Research Logistics
SN - 0894-069X
IS - 4
ER -