Distributive and additive costsharing of an homogeneous good

Moulin, H. and Shenker, S. (1999) Distributive and additive costsharing of an homogeneous good. Games and Economic Behavior, 27(2), pp. 299-330. (doi: 10.1006/game.1998.0673)

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Individual users demand different quantities of a homogeneous good produced under variable returns. We describe the family of costsharing methods that allocate costs in proportion to demands when returns are constant, and commute with the additivity and composition of cost functions. Two simple such methods are average cost pricing and incremental costsharing. All other methods in the family combine elements of the average cost and incremental ones. Serial costsharing stands out prominently in the family, whereas the Shapley–Shubik method, and all values from the associated stand alone cooperative game, are excluded.

Item Type:Articles
Glasgow Author(s) Enlighten ID:Moulin, Professor Herve
Authors: Moulin, H., and Shenker, S.
College/School:College of Social Sciences > Adam Smith Business School > Economics
Journal Name:Games and Economic Behavior
Publisher:Academic Press
ISSN (Online):1090-2473

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