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Decreasing Serial Cost Sharing: an Axiomatic Characterization

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  • Jens Leth Hougaard

    (Department of Economics, University of Copenhagen)

  • Lars Peter Østerdal

    (Department of Economics, University of Copenhagen)

Abstract

The increasing serial cost sharing rule of Moulin and Shenker [Econometrica 60 (1992) 1009] and the decreasing serial rule of de Frutos [Journal of Economic Theory 79 (1998) 245] have attracted attention due to their intuitive appeal and striking incentive properties. An axiomatic characterization of the increasing serial rule was provided by Moulin and Shenker [Journal of Economic Theory 64 (1994) 178]. This paper gives an axiomatic characterization of the decreasing serial rule.

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Bibliographic Info

Paper provided by University of Copenhagen. Department of Economics in its series Discussion Papers with number 07-02.

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Length: 15 pages
Date of creation: Jan 2007
Date of revision:
Handle: RePEc:kud:kuiedp:0702

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Keywords: serial cost sharing; cost allocation; axiomatic characterization;

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References

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  1. Jens Leth Hougaard & Lars Thorlund-Petersen, 2000. "The stand-alone test and decreasing serial cost sharing," Economic Theory, Springer, vol. 16(2), pages 355-362.
  2. 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.
  3. Moulin, Herve & Shenker, Scott, 1992. "Serial Cost Sharing," Econometrica, Econometric Society, vol. 60(5), pages 1009-37, September.
  4. Hougaard, Jens Leth & Thorlund-Petersen, Lars, 2001. "Mixed serial cost sharing," Mathematical Social Sciences, Elsevier, vol. 41(1), pages 51-68, January.
  5. Jens Leth Hougaard & Lars Peter Østerdal, 2007. "Decreasing Serial Cost Sharing: an Axiomatic Characterization," Discussion Papers 07-02, University of Copenhagen. Department of Economics.
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Cited by:
  1. Jens Hougaard & Lars Østerdal, 2009. "Decreasing serial cost sharing: an axiomatic characterization," International Journal of Game Theory, Springer, vol. 38(4), pages 469-479, November.

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