Other Cost and Profit Examples
Most cost applications, however, do not exhibit this special rail or taxicab structure. In such cases the Shapley value can still be calculated in the same way, but the ultimate solution may not have the intuitively appealing property of the taxi solution.
An Application to Power Generation
Suppose three townships—A, B, and C—are planning to share the cost of a wind farm to be built nearby. The townships have different populations (both residential and commercial) and therefore different energy needs. In addition, the wind farm is not equidistant from the three townships.
Suppose A, if building its own wind farm, would need to spend $4 million; B, if building its own capacity, would have to spend $10 million; ...