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Multi-service serial cost sharing : a characterization of the Moulin-Shenker rule

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Author Info
Koster, M. (Tilburg University, Center for Economic Research)

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Abstract

We focus on the Moulin-Shenker cost sharing rule as a natural extension of the serial rule to multi-service facilities where services are personalized. We show that it is the unique regular rule that is compatible with scale invariance and self consistency.

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Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 6.

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Date of creation: 1998
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Handle: RePEc:dgr:kubcen:19986

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Find related papers by JEL classification:
C69 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Other
D49 - Microeconomics - - Market Structure and Pricing - - - Other

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  1. Moulin, Herve & Shenker, Scott, 1992. "Serial Cost Sharing," Econometrica, Econometric Society, vol. 60(5), pages 1009-37, September. [Downloadable!] (restricted)
  2. Moulin, Herve, 1995. "On Additive Methods to Share Joint Costs," Mathematical Social Sciences, Elsevier, vol. 30(1), pages 98-99, August. [Downloadable!] (restricted)
  3. 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. [Downloadable!] (restricted)
  4. Eric Friedman & Moulin, Herve, 1995. "Three Methods to Share Joint Costs or Surplus," Working Papers 95-38, Duke University, Department of Economics.
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  5. Tijs, S. & Koster, M., 1996. "General aggregation of demand and cost sharing methods," Discussion Paper 87, Tilburg University, Center for Economic Research. [Downloadable!]
  6. Thomson, W., 1996. "Consistent Allocation Rules," RCER Working Papers 418, University of Rochester - Center for Economic Research (RCER).
  7. Koster, M., 1998. "Multi-service serial cost sharing : an incompatibility with smoothness," Discussion Paper 122, Tilburg University, Center for Economic Research. [Downloadable!]
  8. Moulin, Herve, 1996. "Cost Sharing under Increasing Returns: A Comparison of Simple Mechanisms," Games and Economic Behavior, Elsevier, vol. 13(2), pages 225-251, April. [Downloadable!] (restricted)
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  9. 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. [Downloadable!] (restricted)
  10. Thomson, A., 1989. "The Consistency Principle," RCER Working Papers 192, University of Rochester - Center for Economic Research (RCER).
  11. Martin Shubik, 1961. "Incentives, Decentralized Control, the Assignment of Joint Costs and Internal Pricing," Cowles Foundation Discussion Papers 112, Cowles Foundation, Yale University. [Downloadable!]
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