In Problem 6.25 we considered that there are three types of planes (1, 2, and 3) that use an airport.
Plane 1 needs a 100-yard runway, 2 needs a 150-yard runway, and 3 needs a 400-yard runway. The cost of maintaining a runway is equal to its length. Suppose this airport has one 400-yard runway used by all three types of planes and assume that for the day under study, only one plane of each type lands at the airport. We want to know how much of the $400 cost should be allocated to each plane. We showed that the nucleolus is C(ε = −50) = {x1 = x2 = −50, x3 = −300
(a) Find the Shapley cost allocation.
(b) Calculate the excesses for both the nucleolus and Shapley allocations.
In Problem 6.25 we considered that there are three types of planes (1, 2, and 3) that use an airport.