This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Alternative Methods for Cost Allocation in Stochastic Service Systems

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Richard P. McLean (Rutgers University)
William W. Sharkey (Federal Communications Commission,Washington)
Abstract

In this paper we consider the question of allocating costs and setting prices for customers in a variety of queuing systems. We will focus on the problem of setting users fees within an organization for a shared resource, such as a computer center. We argue that both the Aumann-Shapley pricing rule, and a pricing rule based on the Shapley value of a finite game, are appropriate cost allocation methodologies. These approaches allow us to explicitly determine prices for customers in a queuing situation, who differ from one another in terms of their arrival rates, service rates, costs of lost work, and the number of simultaneous servers which they require.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.beje.decon.ufpe.br/sharkey/sharkey.htm
File Format: text/html
File Function: Full text
Download Restriction: no

Publisher Info
Article provided by Department of Economics, Universidade Federal de Pernambuco in its journal Brazilian Electronic Journal of Economics.

Volume (Year): 1 (1998)
Issue (Month): 1 (July)
Pages:
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:bej:issued:v:1:y:1998:i:1:sharkey

Contact details of provider:
Postal: Av Prof. Moraes Rego, 1235 CEP: 50670-420, Recife - PE
Email:
Web page: http://www.beje.decon.ufpe.br/
More information through EDIRC

Order Information:
Email:
Web: http://www.beje.decon.ufpe.br/

For technical questions regarding this item, or to correct its listing, contact: (Jose Ricardo Nogueira).

Related research
Keywords: Cost allocation; Organizations; Shapley Value;

Statistics
Access and download statistics

Did you know? RePEc data is maintained by each archive holder on its own website. Nothing is held centrally.

This page was last updated on 2009-12-2.


This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.