Allocating the Cost of Empty Railcar Miles in a Dynamic Railroad Network

In a multi–level railcar system, the formation of coalitions among railcar companies can potentially lead to a reduction in the total empty mile cost, an important part of the variable cost of the railcar system. In order to maintain a sustainable coalition, it is important to ensure that the costs incurred in the coalition will be fairly allocated to participating companies in the coalition. This paper proposes a cost allocation scheme based on game theory that allocates the cost of empty car miles to participating companies in a coalition for a railcar system. The method can ensure fairness and enhance stability of a coalition since it explicitly considers the level of contribution from each company in the coalition. The properties important for fairness in cost allocation and stability for the coalition are discussed. The authors have also demonstrated in the paper that the proposed cost allocation scheme can be coupled with a generalized optimization model for empty car distribution in a dynamic railroad network.

• Record URL:
  https://doi.org/10.1504/IJSTL.2013.054194
• Record URL:
  http://inderscience.metapress.com/link.asp?target=contribution&id=A78QUL7H7H7M1762
• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/17566517
• Authors:
  • Cheng, Yao
  • Tan, Jingzi
  • Lin, Wei–Hua
• Publication Date: 2013

Language

• English

Media Info

• Media Type: Digital/other
• Features: References;
• Pagination: pp 350-366
• Serial:
  • International Journal of Shipping and Transport Logistics
  • Volume: 5
  • Issue Number: 3
  • Publisher: Inderscience Enterprises Limited
  • ISSN: 1756-6517
  • EISSN: 1756-6525
  • Serial URL: http://www.inderscience.com/jhome.php?jcode=ijstl

Subject/Index Terms

• TRT Terms: Coalitions; Cost allocation; Empty car miles; Freight transportation; Game theory; Optimization; Pricing; Railroads
• Subject Areas: Administration and Management; Planning and Forecasting; Railroads; I72: Traffic and Transport Planning;

Filing Info

• Accession Number: 01484306
• Record Type: Publication
• Files: TRIS
• Created Date: Jun 4 2013 10:05AM