Transmission Investment Cost Allocation within the Cooperative Game Framework

This paper identifies the situations in which transmission investment are good for society as a whole but not necessarily for each agent. Regarding these situations, we define the rules for the allocation of transmission investment costs from the perspective of cooperative game theory. The main idea is that each investment cost allocation problem can be formulated into a cooperative game. Then one can apply well-known game theoretic solutions concepts such as the shapley value, core and nucleolus to the game induced by the cost allocation problem and obtain the corresponding cost allocations