An alternative method to share the initial fixed cost of a local area network

Abstract

The managers of local area networks must often determine how to share the initial fixed cost of the network among its users. The methods commonly used for this task are unsatisfactory. An alternative technique to solve this problem is presented and applied to the network of an actual corporation. The technique is based on four simplifications derived from the Shapley Value. The simplifications generate the same cost division as the Shapley Value and are easier to calculate. The results of the method are demonstrated and the network managers reaction is noted. >