Research on Cost Allocation in the Cooperative Game of Overflowing Infrastructure Investment

As is well known, infrastructure is very important to people\´s living and manufacturing activities. And infrastructure investment has become a big deal that related the healthy development of town\´s society and economy. The investment of infrastructure with high operational-degree can be realized through marketization. However, for infrastructure with low operational-degree, government is always its investment subject. Especially for overflowing infrastructure with low operational-degree, governments will take the countermeasure to invest in the overflowing infrastructure together usually to satisfy each administrative region\´s demand. Because of this kind of infrastructure has less or even no cash flow, so it may be much proper to substitute "investment" with the word "cost" here. In the process of investment cooperation, there exists game between governments around the allocation of investment viz. cost, and the relation between governments is cooperative game. In face of unbalanced requirements levels, in order to promote the realization of overflowing infrastructure investment, how to allocate cost among governments that participating in investment effectively? This paper answered this question. Firstly, the paper provided the basic statement of cost allocation problem. On the basis of analyzing several cost allocation methods of cooperative game, chose NSCG method based on separable cost and inseparable cost as the cost allocation method of this paper. Then, put forward the process of cost allocation deeply by using NSCG method based on separable cost and inseparable cost. At last, the paper simulated the application of this method in the cooperative game of overflowing infrastructure investment through an example. We hope the research will benefit the practice.