Abstract

In water resources projects, a cost allocation problem is critical. In this paper, cost allocation methods based on game theory are studied. We focus on the projects with a network, which involves reservoirs, lakes, pipelines and rivers. Water resources development projects with networks have different characteristics from multipurpose reservoir projects. In network projects, the projects by the small number of the members (partial coalitions) may not be feasible. Cost allocation methods need to take the effects from these infeasible coalitions into account. The effectiveness of the weighted Shapley value, the Shapley value using modified cost function, and the network allocation method is compared.

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