Distributing Regional Services Costs

by Lewis A. Rossman, (A.M.ASCE), Asst Prof. of Civ. Engrg.; Worcester Polytechnic Inst., Worcester, Mass.,
Patricia Ann Graham, Grad. Research Asst.; Worcester Polytechnic Inst., Worcester, Mass.,

Serial Information: Journal of the Urban Planning and Development Division, 1979, Vol. 105, Issue 1, Pg. 51-62

Document Type: Journal Paper


Regional systems to provide urban services must be designed not only on the basis of cost effectiveness but also with regard to a proper distribution of costs among the participants. The cost distribution should be equitable and stable (in the sense that incentives for groups to break away and form separate systems are minimized). Concepts of n-person cooperative game theory are utilized to develop quantitative measures of equity and stability. These measures are incorporated into linear programming models that allow explicit equity-stability tradeoffs to be made in distributing the costs of the least-cost regional service plan. Examples that demonstrate the use of the methods are provided.

Subject Headings: Urban areas | Game theory | Computer programming | Financial management

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