A game theoretical framework for allocating cost and gas emission responsibilities in a collaborative setting

Global warming poses significant risks to our planet and has a tremendous impact on our daily lives. Unless severe precautions are taken, these adverse effects are most likely to increase drastically and threaten other aspects of our lives and the environment. We consider a shippers’ network in a full-truckload transportation setting. We develop a framework to allocate the resulting cost of this network to the shippers’ while determining the gas emission responsibilities. We conduct a computational analysis to test the effectiveness and the time efficiency of this mechanism in comparison with the proportional-based allocation method and the Shapley Value allocation method.