original papers : Proportionally adjusted marginal pricing method to share joint costs
AbstractWe consider the cost sharing problem with divisible demands of heterogeneous goods. We propose a cost sharing method called Proportionally Adjusted Marginal Pricing (PAMP) method. PAMP is a nonadditive (in the cost function) extension of average cost pricing. We introduce an axiom called Local Independence (LI) and use LI together with Continuity, Proportionality, and Scale Invariance to characterize PAMP.
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Bibliographic InfoArticle provided by Springer in its journal Review of Economic Design.
Volume (Year): 7 (2002)
Issue (Month): 2 ()
Note: Received: 23 March 2001 / Accepted: 16 November 2001
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Web page: http://link.springer.de/link/service/journals/10058/index.htm
Find related papers by JEL classification:
- C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
- D62 - Microeconomics - - Welfare Economics - - - Externalities
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
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