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Distributive and Additive Costsharing of an Homogeneous Good

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  • Moulin, Herve
  • Shenker, Scott

Abstract

We consider the sharing of the cost of producing a homogeneous good when the technology has variable returns and individuals have arbitrary demands. We give a full analytical description of the family of costsharing methods that allocate costs in propor tion to demands when returns are constant, and commute with the additivity and composition of cost functions.

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File URL: http://www.sciencedirect.com/science/article/B6WFW-45JC96N-6/2/8e5159229848bc46a5bef8761aabb157
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Bibliographic Info

Article provided by Elsevier in its journal Games and Economic Behavior.

Volume (Year): 27 (1999)
Issue (Month): 2 (May)
Pages: 299-330

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Handle: RePEc:eee:gamebe:v:27:y:1999:i:2:p:299-330

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Web page: http://www.elsevier.com/locate/inca/622836

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  1. Pfingsten, Andreas, 1991. "Surplus-sharing methods," Mathematical Social Sciences, Elsevier, vol. 21(3), pages 287-301, June.
  2. Martin Shubik, 1961. "Incentives, Decentralized Control, the Assignment of Joint Costs and Internal Pricing," Cowles Foundation Discussion Papers 112, Cowles Foundation for Research in Economics, Yale University.
  3. Hervé Moulin, 1995. "On Additive Methods To Share Joint Costs," The Japanese Economic Review, Japanese Economic Association, vol. 46(4), pages 303-332, December.
  4. Aumann, Robert J. & Maschler, Michael, 1985. "Game theoretic analysis of a bankruptcy problem from the Talmud," Journal of Economic Theory, Elsevier, vol. 36(2), pages 195-213, August.
  5. Faulhaber, Gerald R, 1975. "Cross-Subsidization: Pricing in Public Enterprises," American Economic Review, American Economic Association, vol. 65(5), pages 966-77, December.
  6. Eric Friedman & Moulin, Herve, 1995. "Three Methods to Share Joint Costs or Surplus," Working Papers 95-38, Duke University, Department of Economics.
  7. Young, H. P., 1988. "Distributive justice in taxation," Journal of Economic Theory, Elsevier, vol. 44(2), pages 321-335, April.
  8. Moulin, Herve, 1992. "Welfare bounds in the cooperative production problem," Games and Economic Behavior, Elsevier, vol. 4(3), pages 373-401, July.
  9. Fleurbaey, Marc & Maniquet, Francois, 1996. "Cooperative Production: A Comparison of Welfare Bounds," Games and Economic Behavior, Elsevier, vol. 17(2), pages 200-208, December.
  10. O'Neill, Barry, 1982. "A problem of rights arbitration from the Talmud," Mathematical Social Sciences, Elsevier, vol. 2(4), pages 345-371, June.
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Cited by:
  1. Moulin, Herve & Sprumont, Yves, 2002. "Responsibility and Cross-Subsidization in Cost Sharing," Working Papers 2002-05, Rice University, Department of Economics.
  2. Moulin, Herve, 2001. "Axiomatic Cost and Surplis-Sharing," Working Papers 2001-06, Rice University, Department of Economics.

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