Sharing the cost of the polluted river: a class of bilateral compensation methods.

Bibliographic Details
Title: Sharing the cost of the polluted river: a class of bilateral compensation methods.
Authors: Hou, Dongshuang1 (AUTHOR), Feng, Yifan1 (AUTHOR) fyf0907@mail.nwpu.edu.cn, Sun, Panfei1 (AUTHOR), Sun, Hao1 (AUTHOR)
Source: OR Spectrum. Dec2024, Vol. 46 Issue 4, p1241-1264. 24p.
Subject Terms: *Cost allocation, *Cost shifting, *Game theory, *Pollutants, Water pollution
Abstract: Water pollution is harmful to people's health and causes great damage to ecology. Cleaning up pollutants in cross-boundary river requires joint action of agents along the river. In this paper, we deal with the polluted river cost sharing problem in a cooperative situation. We first introduce a class of bilateral compensation methods (shortly the BC method), which are generalizations of the famous cost allocations, such as Upstream Equal Sharing method and Downstream Equal Sharing method. Then, we investigate the relationship between the BC method and the Shapley value of a special responsibility cost game. Also, we illustrate the stability of the BC method by studying the concavity of the corresponding cost game. Moreover, we provide two axiomatic characterizations of the BC method. [ABSTRACT FROM AUTHOR]
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ISSN:01716468
DOI:10.1007/s00291-023-00738-8
Published in:OR Spectrum
Language:English