Impact of Utility Function to Service Center Location in Public Service System
Traditional approaches to the public service system design can be seen as a resource allocation problem with a central planner, where social costs are minimized. Even though all tax payers share the costs of the system construction and its operation, not all citizens have the same access to the service. There are two different ways of evaluating the resulting quality of the general system. The utilitarian approach prefers solutions which maximize the system utility. The fair approach, on the other hand, takes into account the preferences of individual users and their rights to have an equal access to the provided services. In this paper we focus on reformulation of the public service system design problem to the utility maximization problem, where both, the system and fair approaches will be studied. We evaluate the impact of the used utility functions on the location of service centres. We compare the distribution of located centres in comparison with other approaches, and we explore its impact on the price of fairness.
This work was supported by the research grant VEGA 1/0296/12 Public Service Systems with Fair Access to Service and APVV-0760-11 Designing of Fair Service Systems on Transportation Networks
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