Article ID: | iaor19901007 |
Country: | United States |
Volume: | 24 |
Issue: | 2 |
Start Page Number: | 137 |
End Page Number: | 144 |
Publication Date: | May 1990 |
Journal: | Transportation Science |
Authors: | Kaplan Edward H., Berman Odeb |
Keywords: | location |
A plethora of methods exists for finding cost minimizing facility locations. However, it is generally true that once optimal locations have been found, the benefits derived from the facilities will not be distributed equally across customers due to differences in travel costs. Though some schemes aimed at providing more equitable facility locations have been proposed, none of these schemes are fully satisfactory in that there are always customers who are winners or losers with respect to the cost of travel. In this paper, the authors address the equity question using taxes (in the case of a central authority) or side payments (in the case of cooperating authorities) to redress benefit inequities. They show that the usual distance minimizing facility location formulations are still optimal, providing a very simple tax or side payment scheme is used to equalize benefits for