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Nearly Serial Sharing Methods

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  • SPRUMONT, Yves

Abstract

A group of agents participate in a cooperative enterprise producing a single good. Each participant contributes a particular type of input; output is nondecreasing in these contributions. How should it be shared? We analyze the implications of the axiom of Group Monotonicity: if a group of agents simultaneously decrease their input contributions, not all of them should receive a higher share of output. We show that in combination with other more familiar axioms, this condition pins down a very small class of methods, which we dub nearly serial.

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File URL: http://hdl.handle.net/1866/529
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Bibliographic Info

Paper provided by Universite de Montreal, Departement de sciences economiques in its series Cahiers de recherche with number 2004-14.

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Date of creation: 2004
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Handle: RePEc:mtl:montde:2004-14

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Keywords: surus sharing; cost sharing; groumonotonicity; serial method;

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  1. Eric Friedman & Moulin, Herve, 1995. "Three Methods to Share Joint Costs or Surplus," Working Papers 95-38, Duke University, Department of Economics.
  2. Moulin, Herve, 1995. "On Additive Methods to Share Joint Costs," Mathematical Social Sciences, Elsevier, vol. 30(1), pages 98-99, August.
  3. MOULIN, Hervé & SPRUMONT, Yves, 2005. "Fair Allocation of Production Externalities: Recent Results," Cahiers de recherche 28-2005, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
  4. Martin Shubik, 1961. "Incentives, Decentralized Control, the Assignment of Joint Costs and Internal Pricing," Cowles Foundation Discussion Papers 112, Cowles Foundation for Research in Economics, Yale University.
  5. MOULIN, Hervé & SPRUMONT, Yves., 2002. "Responsibility and Cross-Subsidization in Cost Sharing," Cahiers de recherche 2002-19, Universite de Montreal, Departement de sciences economiques.
  6. Moulin, Herve, 2002. "Axiomatic cost and surplus sharing," Handbook of Social Choice and Welfare, in: K. J. Arrow & A. K. Sen & K. Suzumura (ed.), Handbook of Social Choice and Welfare, edition 1, volume 1, chapter 6, pages 289-357 Elsevier.
  7. Moulin, Herve & Sprumont, Yves, 2005. "On demand responsiveness in additive cost sharing," Journal of Economic Theory, Elsevier, vol. 125(1), pages 1-35, November.
  8. 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.
  9. Moulin, Herve & Shenker, Scott, 1992. "Serial Cost Sharing," Econometrica, Econometric Society, vol. 60(5), pages 1009-37, September.
  10. Eric J. Friedman, 2004. "Paths and consistency in additive cost sharing," International Journal of Game Theory, Springer, vol. 32(4), pages 501-518, 08.
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Cited by:
  1. Eric Bahel, 2011. "The implications of the ranking axiom for discrete cost sharing methods," International Journal of Game Theory, Springer, vol. 40(3), pages 551-589, August.
  2. Eric Bahel & Hans Haller, 2012. "Cycles with Undistinguished Actions and Extended Rock-Paper-Scissors Games," Working Papers e07-35, Virginia Polytechnic Institute and State University, Department of Economics.
  3. SPRUMONT, Yves, 2010. "An Axiomatization of the Serial Cost-Sharing Method," Cahiers de recherche 2010-01, Universite de Montreal, Departement de sciences economiques.
  4. Eric Bahel & Christian Trudeau, 2013. "Independence of dummy units and Shapley-Shubik methods in cost sharing problems with technological cooperation," Working Papers 1304, University of Windsor, Department of Economics.
  5. SPRUMONT, Yves & MOULIN, Hervé, 2005. "Fair Allocation of Production Externalities: Recent Results," Cahiers de recherche 2005-22, Universite de Montreal, Departement de sciences economiques.

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