Cost-Sharing Problem on the West Kyushu Shinkansen

Abstract

This study addresses the issue of cost sharing in the development of the West Kyushu Shinkansen and analyzes it using ”core” and ”nucleolus” methods of game theory. Saga Prefecture, the national government, and Nagasaki Prefecture have not yet reached an agreement on the construction method and cost-sharing for the West Kyushu Shinkansen. Based on the benefit amount, this study shows that the current cost sharing among the three parties is not appropriate using the "core" of game theory. Then, the optimal cost-sharing amount based on the benefit principle was calculated among the three parties using "nucleolus".