The Traveling Salesman Game for Cost Allocation: The Case Study of the Bus Service in Castellanza | Zendy

Nicola Besozzi | Zendy; Luca Ruschetti | Zendy; Chiara Rossignoli | Zendy; Fernanda Strozzi | Zendy

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The Traveling Salesman Game for Cost Allocation: The Case Study of the Bus Service in Castellanza

Author(s) -

Nicola Besozzi,

Luca Ruschetti,

Chiara Rossignoli,

Fernanda Strozzi

Publication year - 2014

Publication title -

game theory

Language(s) - English

Resource type - Journals

eISSN - 2356-6930

pISSN - 2314-6559

DOI - 10.1155/2014/696945

Subject(s) - travelling salesman problem , traveling purchaser problem , mathematical optimization , service (business) , computer science , separable space , operations research , game theory , cooperative game theory , cost allocation , 2 opt , microeconomics , economics , business , mathematics , marketing , accounting , mathematical analysis

This paper studies cost allocation for the bus transportation service in Castellanza, a small town (14,000 inhabitants ca.) close to Varese, Italy. Carlo Cattaneo University (LIUC) is one of thepromoters and funders of this service, together with the City Council and other private agents. The case study is first analysed as a traveling salesman problem (TSP) to find the optimal route. Then the traveling salesman game (TSG) is introduced, where the bus stops are associated with the players of a cooperative game, thus allowing the study of possible allocations of the total cost among them. The optimal route is found by the Branch and Bound algorithm. The Shapley vector and the separable and nonseparable cost are the methods used to allocate the cost of the optimal route among players.

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