The Airport Problem Revisted

The Airline Problem: Quick Summary

Airlines considering building an airport runway.

Shapley’s Solution

Shapley’s solution for dividing up runway construction costs.
Shapley’s solution for what each airline should pay.
A spreadsheet view for my fellow Google sheets fans.

An Alternate Solution

Relative Need Splitting Solution

Relative importance of each runway section to each airline.
  • Alpha =100% of runway needs = 1/1 = 12/12
  • Bravo = 50% of runway needs = 1/2 = 6/12
  • Charlie = 33% of runway needs = 1/3 = 4/12
  • Delta = 25% of runway needs = 1/4 = 3/12
Cost split when considering the relative value of a section of runway to each’s overall needs.
Total cost per airline considering the relative value of a section of runway to each’s overall needs.

Relative Costs Splitting Solution

  • Alpha =100% of runway costs = $8/$8 = 10,296 / 10,296
  • Bravo = 72.7% of runway needs = $8/$11 = 7,488 / 10,296
  • Charlie = 61.5% of runway needs = $8/$13 = 6,336 / 10,296
  • Delta = 44.4% of runway needs = $8/$18 = 4,576 / 10,296

Is there room in the game theory pantheon for the Relative Costs Splitting solution?

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