Sharing the costs of cleanup polluted river: Upstream compensation method

Dongshuang Hou; Panfei Sun; Guangjing Yang

doi:10.1016/j.econlet.2020.109473

Sharing the costs of cleanup polluted river: Upstream compensation method

Dongshuang Hou, Panfei Sun^*, Guangjing Yang

^*Corresponding author for this work

Mathematics of Operations Research

Research output: Contribution to journal › Article › Academic › peer-review

1 Citation (Scopus)

Abstract

This article proposes one new allocation called upstream compensation method (UCM, for short) for the polluted river cleanup cost, based on two doctrines in international disputes. We explain the fairness of the method by showing the coincidence of UCM method and the Shapley value. On the other, by studying the concavity of the induced game, we illustrate the stability of UCM.

Original language	English
Article number	109473
Journal	Economics letters
Volume	195
DOIs	https://doi.org/10.1016/j.econlet.2020.109473
Publication status	Published - Oct 2020

Keywords

Cooperative game
Cost allocation
Fairness
Polluted river
Shapley value

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abstract = "This article proposes one new allocation called upstream compensation method (UCM, for short) for the polluted river cleanup cost, based on two doctrines in international disputes. We explain the fairness of the method by showing the coincidence of UCM method and the Shapley value. On the other, by studying the concavity of the induced game, we illustrate the stability of UCM.",

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AB - This article proposes one new allocation called upstream compensation method (UCM, for short) for the polluted river cleanup cost, based on two doctrines in international disputes. We explain the fairness of the method by showing the coincidence of UCM method and the Shapley value. On the other, by studying the concavity of the induced game, we illustrate the stability of UCM.

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KW - Cost allocation

KW - Fairness

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KW - Shapley value

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Sharing the costs of cleanup polluted river: Upstream compensation method

Abstract

Keywords

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