Advanced Search
MyIDEAS: Login

- A Procedure For Sharing Recycling Costs

Contents:

Author Info

  • José Alcalde

    ()
    (Universidad de Andalucía)

  • José Angel Silva

    (Universidad de Alicante)

Abstract

This paper examines a situation in which the production activities of different agents, in a common geographical location, create waste products that are either of a similar biological or chemical composition or offer commercially compatible combinations. What we propose here, therefore, is a cost-sharing model for the of recycling of their waste products. We concentrate, however, on the specific case in which the agents' activities are heterogeneous. We first examine, from a normative point of view, the cost-sharing rule, which we shall call the multi-commodity serial (MCS) rule. We introduce a property, that we call Cost-Based Equal Treatment, and we demonstrate that the unique rule verifying the Serial Principle and this property is the MCS rule. We then deal with the analysis of the agents' strategic behavior when they are allowed to select their own production levels, in which case the total cost is then split, in accordance with the MCS rule. We show that there is only one Nash equilibrium, which is obtained from an interactive elimination of dominated strategies.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.ivie.es/downloads/docs/wpasad/wpasad-2000-14.pdf
File Function: Fisrt version / Primera version, 2000
Download Restriction: no

Bibliographic Info

Paper provided by Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie AD with number 2000-14.

as in new window
Length: 27 pages
Date of creation: Jun 2000
Date of revision:
Publication status: Published by Ivie
Handle: RePEc:ivi:wpasad:2000-14

Contact details of provider:
Postal: C/ Guardia Civil, 22, Esc 2a, 1o, E-46020 VALENCIA
Phone: +34 96 319 00 50
Fax: +34 96 319 00 55
Email:
Web page: http://www.ivie.es/
More information through EDIRC

Related research

Keywords: Cost Sharing Rules; Serial Cost Sharing; Dominance Solvability.;

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. 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.
  2. Sprumont, Y., 1996. "Ordinal Cost Sharing," Cahiers de recherche 9624, Universite de Montreal, Departement de sciences economiques.
  3. Eric Friedman, 1999. "Paths and Consistency in Additive Cost Sharing," Departmental Working Papers 199923, Rutgers University, Department of Economics.
  4. 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.
  5. Eric Friedman & Moulin, Herve, 1995. "Three Methods to Share Joint Costs or Surplus," Working Papers 95-38, Duke University, Department of Economics.
  6. Moulin, Herve, 1979. "Dominance Solvable Voting Schemes," Econometrica, Econometric Society, vol. 47(6), pages 1137-51, November.
  7. Eric Friedman, 1999. "Strong Monotonicity in Surplus Sharing," Departmental Working Papers 199919, Rutgers University, Department of Economics.
  8. Maurice Koster, 2007. "The Moulin–Shenker rule," Social Choice and Welfare, Springer, vol. 29(2), pages 271-293, September.
  9. Mirman, Leonard J. & Tauman, Yair & Zang, Israel, 1986. "Ramsey prices, average cost prices and price sustainability," International Journal of Industrial Organization, Elsevier, vol. 4(2), pages 123-140, June.
  10. 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.
  11. MIRMAN, Leonard J. & TAUMAN, Y., . "The continuity of the Aumann-Shapley price mechanism," CORE Discussion Papers RP -470, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  12. Moulin, Herve, 1994. "Serial Cost-Sharing of Excludable Public Goods," Review of Economic Studies, Wiley Blackwell, vol. 61(2), pages 305-25, April.
  13. Samet, Dov & Tauman, Yair, 1982. "The Determination of Marginal Cost Prices under a Set of Axioms," Econometrica, Econometric Society, vol. 50(4), pages 895-909, July.
  14. Moulin, Herve & Shenker, Scott, 1992. "Serial Cost Sharing," Econometrica, Econometric Society, vol. 60(5), pages 1009-37, September.
  15. E. Loehman & A. Whinston, 1974. "An Axiomatic Approach to Cost Allocation for Public Investment," Public Finance Review, , vol. 2(2), pages 236-250, April.
  16. Young, H Peyton, 1985. "Producer Incentives in Cost Allocation," Econometrica, Econometric Society, vol. 53(4), pages 757-65, July.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Friedman, Eric J., 2002. "Strategic properties of heterogeneous serial cost sharing," Mathematical Social Sciences, Elsevier, vol. 44(2), pages 145-154, November.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:ivi:wpasad:2000-14. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Departamento de Edición).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.