Solution to Toll Highway Cost Allocation Based on Shapley Value

Cooperative games theory has been widely used in the solution of Multi-participant cost allocation problem. This paper reports on the application of Shapley Value to procedure of finding the optimal solution to cost allocation problem among local governments at various levels in China. Based on the analysis of relationship among vehicle flowrate in different segments of highway, we deduce the formula to find a stable solution and raise reasonable solutions to cost allocation of roll highway among various governments involved. Eventually we put forward proper proposals for central government considering its dominant function.