A Game Theoretic Approach to Cost Allocation Methods for the Development of a Basinwide Sewage System

With a focus on basinwide sewage systems, this paper proposes a cost allocation scheme which guarantees an equilibrium reached by participating municipalities (players) who are both selfenforced and self-organized to form appropriate coalitions. Two critical properties of such systems are discussed, i. e., structures of both physical and societal networks. Physical networks include pipelines combined with treatment facilities built in municipalities. Societal networks (graphs) mean cooperative linkages among participating municipalities. It is pointed out that a reasonable cost allocation scheme, should properly reflect the manner in which participants attain an equilibrium in the dynamic evolution process of the two networks.