G-99-22
Time-Consistent Shapley Value Allocation of Pollution Cost Reduction
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We study the problem of allocation over time of total cost incurred by countries in a cooperative game of pollution reduction. We compute the characteristic function for all possible coalitions and apply the Shapley value to determine a fair distribution of the total cooperative cost among players. We design a mechanism for allocation over time of total individual cost so that each player finds it optimal to stick to cooperation for the whole duration of the game.
Paru en mars 1999 , 16 pages