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Coherent Cost-Sharing Rules

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  • Sprumont, Yves

Abstract

We reconsider the discrete version of the axiomatic cost-sharing model. We propose a condition of (informational) coherence requiring that not all informational refinements of a given problem be solved differently from the original problem. We prove that strictly coherent linear cost-sharing rules must be simple random-order rules.

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Bibliographic Info

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

Volume (Year): 33 (2000)
Issue (Month): 1 (October)
Pages: 126-144

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Handle: RePEc:eee:gamebe:v:33:y:2000:i:1:p:126-144

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

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References

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  1. Robert J. Weber, 1977. "Probabilistic Values for Games," Cowles Foundation Discussion Papers 471R, Cowles Foundation for Research in Economics, Yale University.
  2. Henriet, D. & Moulin, H., 1993. "Traffic Based Cost Allocation in Network," G.R.E.Q.A.M. 93a19, Universite Aix-Marseille III.
  3. Sprumont, Y., 1996. "Ordinal Cost Sharing," Cahiers de recherche 9624, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
  4. Aadland, David & Kolpin, Van, 1998. "Shared irrigation costs: An empirical and axiomatic analysis," Mathematical Social Sciences, Elsevier, vol. 35(2), pages 203-218, March.
  5. Koster, Maurice & Tijs, Stef & Borm, Peter, 1998. "Serial cost sharing methods for multi-commodity situations," Mathematical Social Sciences, Elsevier, vol. 36(3), pages 229-242, December.
  6. Hervé Moulin, 1995. "On Additive Methods To Share Joint Costs," The Japanese Economic Review, Japanese Economic Association, vol. 46(4), pages 303-332, December.
  7. Moulin Herve & Shenker Scott, 1994. "Average Cost Pricing versus Serial Cost Sharing: An Axiomatic Comparison," Journal of Economic Theory, Elsevier, vol. 64(1), pages 178-201, October.
  8. S. C. Littlechild & G. Owen, 1973. "A Simple Expression for the Shapley Value in a Special Case," Management Science, INFORMS, vol. 20(3), pages 370-372, November.
  9. Eric Friedman & Moulin, Herve, 1995. "Three Methods to Share Joint Costs or Surplus," Working Papers 95-38, Duke University, Department of Economics.
  10. HervÊ Moulin, 1999. "Incremental cost sharing: Characterization by coalition strategy-proofness," Social Choice and Welfare, Springer, vol. 16(2), pages 279-320.
  11. Moulin, Herve & Shenker, Scott, 1992. "Serial Cost Sharing," Econometrica, Econometric Society, vol. 60(5), pages 1009-37, September.
  12. Young, H.P., 1994. "Cost allocation," Handbook of Game Theory with Economic Applications, in: R.J. Aumann & S. Hart (ed.), Handbook of Game Theory with Economic Applications, edition 1, volume 2, chapter 34, pages 1193-1235 Elsevier.
  13. Wang, YunTong, 1999. "The additivity and dummy axioms in the discrete cost sharing model," Economics Letters, Elsevier, vol. 64(2), pages 187-192, August.
  14. Kolpin, Van, 1996. "Multi-Product Serial Cost Sharing: An Incompatibility with the Additivity Axiom," Journal of Economic Theory, Elsevier, vol. 69(1), pages 227-233, April.
  15. Martin Shubik, 1962. "Incentives, Decentralized Control, the Assignment of Joint Costs and Internal Pricing," Management Science, INFORMS, vol. 8(3), pages 325-343, April.
  16. E. Loehman & A. Whinston, 1974. "An Axiomatic Approach to Cost Allocation for Public Investment," Public Finance Review, , vol. 2(2), pages 236-250, April.
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Cited by:
  1. Moulin, Herve & Sprumont, Yves, 2004. "On Demand Responsiveness in Additive Cost Sharing," Working Papers 2004-03, Rice University, Department of Economics.
  2. Moulin, Herve & Vohra, Rakesh, 2003. "Characterization of additive cost sharing methods," Economics Letters, Elsevier, vol. 80(3), pages 399-407, September.
  3. Moulin, Herve & Sprumont, Yves, 2006. "Responsibility and cross-subsidization in cost sharing," Games and Economic Behavior, Elsevier, vol. 55(1), pages 152-188, April.
  4. repec:hal:journl:halshs-00308738 is not listed on IDEAS
  5. Moulin, Herve, 2001. "Axiomatic Cost and Surplis-Sharing," Working Papers 2001-06, Rice University, Department of Economics.

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