The game theory in cost allocation
Date of Publication
2009
Document Type
Bachelor's Thesis
Degree Name
Bachelor of Science in Mathematics with specialization in Business Applications
Subject Categories
Mathematics
College
College of Science
Department/Unit
Mathematics and Statistics
Thesis Adviser
Ederlina G. Nocon
Defense Panel Chair
Anita C. Ong
Defense Panel Member
Yvette F. Lim
Michele G. Tan
Abstract/Summary
This paper is a partial exposition of the article written by Hobart Peyton Young entitled Cost Allocation [11], which can be found in the Handbook of Game Theory with Economic Applications by Robert J. Aumann and Sergiu Hart. We presented the basic concepts of cooperative game theory which is very useful in the analyses of cooperative game models and illustrated some allocation methods. This paper responded to the dilemma, If the grand coalition forms, how must the profit or cost be divided among the players? We enumerated sufficient and necessary conditions in order to create an idealized distribution of resources. In the end, the answer to the question, Who needs whom more? determines which proposed allocation will be taken into account. We offered different possible solutions to the problems of cost allocation. We analyzed various allocation methods and illustrated it on a TVA project. We gave a more detailed explanation to the Alternate Cost Avoided Method. The results of this thesis can be applied to real scenarios of similar problems.
Abstract Format
html
Language
English
Format
Accession Number
TU15640
Shelf Location
Archives, The Learning Commons, 12F, Henry Sy Sr. Hall
Physical Description
v, 86, [22] leaves, color illustrations, 28 cm.
Keywords
Game theory; Cost allocation
Recommended Citation
Chua, V., & Orbe, E. (2009). The game theory in cost allocation. Retrieved from https://animorepository.dlsu.edu.ph/etd_bachelors/5198
Embargo Period
4-5-2021