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Internal Telephone Billing Rates—A Novel Application of Non-Atomic Game Theory
Author(s) -
Louis J. Billera,
David C. Heath,
Joseph Raanan
Publication year - 1978
Publication title -
operations research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 3.797
H-Index - 140
eISSN - 1526-5463
pISSN - 0030-364X
DOI - 10.1287/opre.26.6.956
Subject(s) - computer science , cover (algebra) , game theory , value (mathematics) , operations research , mathematical economics , mathematics , mechanical engineering , machine learning , engineering

We consider the problem of determining rates for a situation in which services are purchased in bulk but have to be paid for by a large number of small users. The desired rates must be \"fair\" and they must cover all costs. The problem is formulated as a non-atomic game and solved by using the value of the game. In addition to the general problem, we present a detailed actual case, together with computational methods and results.

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