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Serial Cost Sharing in Multidimensional Contexts

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Author Info
Téjédo, Cyril
Truchon, Michel
Abstract

The Serial Cost Sharing Rule was originally conceived for situations where the demands of agents pertain to a homogeneous private good, produced by an unreplicable technology. In this context, it is endowed with a variety of desirable equity and coherency properties. This paper investigates the extension of this rule to the context where agents request many goods that may be public, private or specific to some of them, where the aggregation rule may be very general and where demands may have to be scaled in a non proportional way, more precisely along a path, in order to compute cost shares. It proposes the Path Serial Rule to address these general problems. It then shows which properties and characteristics are satisfied by this rule. Some of them are transposed directly from the single good context to the general one while other must be weakened. More precisely, they are required to hold only on the paths along which demands must be scaled if needed. Nevertheless, some of the characterisations of the serial rule in the single good case do not carry over to the general context.

La règle de partage séquentiel des coûts a été conçue à l'origine pour le cas où les demandes des agents portent sur un bien privé homogène, produit par une technologie non reproductible. Dans un tel contexte, cette règle satisfait de nombreuses propriétés d'équité et de cohérence. Dans cet article, on étudie l'extension de cette règle aux cas où les demandes des agents peuvent être des vecteurs qui ne représentent pas forcément des biens homogènes entre les agents, dont l'agrégation ne se fait pas uniquement via la sommation et où les demandes doivent être ajustées de manière non proportionnelle, plus précisément le long d'un sentier, pour le calcul des parts de coût. On montre ensuite quelles sont les propriétés qui sont satisfaites par cette règle ou qui la caractérisent. Certaines sont transposées directement du contexte à un seul bien au contexte général alors que d'autres doivent être affaiblies. Plus précisément, on exige leur respect uniquement le long des sentiers servant à ajuster les demandes le cas échéant. Néanmoins, certaines caractérisations de la règle séquentielle dans le contexte à un seul bien ne peuvent pas être transposées au contexte général.

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Paper provided by Université Laval - Département d'économique in its series Cahiers de recherche with number 0108.

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Date of creation: 2001
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Handle: RePEc:lvl:laeccr:0108

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Related research
Keywords: Serial cost sharing; multi products; general aggregation;

Find related papers by JEL classification:
D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games

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  1. Petr Hanel, 2003. "Impact Of Government Support Programs On Innovation By Canadian Manufacturing Firms," Cahiers de recherche 04-02, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke. [Downloadable!]
  2. Pene Kalulumia, 2002. "Effects of government debt on interest rates: evidence from causality tests in johansen-type models," Cahiers de recherche 02-07, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke. [Downloadable!]
  3. Pene Kalulumia & Denis Bolduc, 2004. "Generalized Mixed Estimation Of A Multinomial Discretecontinuous Choice Model For Electricity Demand," Cahiers de recherche 04-01, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke. [Downloadable!]
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