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Sharing Costs and Sharing Revenue: The Proportional Solutions

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  • Lahiri Somdeb

Abstract

Consider a group of people who have just been awarded a sum of money to undertake a consultancy for a research project. The problem that now confronts them is to share the revenue as well as the costs of the overheads involved in undertaking the project. In this paper we propose a proportional solution to this problem, prove the existence of such a solution (in a special case) and establish its optimality.

Suggested Citation

  • Lahiri Somdeb, 1994. "Sharing Costs and Sharing Revenue: The Proportional Solutions," IIMA Working Papers WP1994-04-01_01260, Indian Institute of Management Ahmedabad, Research and Publication Department.
    • Handle: RePEc:iim:iimawp:wp01260
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