A cost allocation problem in urban solid wastes collection and disposal

In this paper we consider a cost allocation problem arising in a consortium for urban solid wastes collection and disposal. A classical allocation rule is the proportional division according to the volume of wastes collected; here we propose a different allocation method, rooted in game theory, based on a model developed by Fragnelli et al. [3], using the Shapley Value and the Owen Value as allocation rules. The model was applied to the data of the consortium Ovadese – Valle Scrivia, comparing our results and the actual ones. Copyright Springer-Verlag 2004