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An Axiomatization of the Serial Cost-Sharing Method

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  • SPRUMONT, Yves

Abstract

We offer an axiomatization of the serial cost-sharing method of Friedman and Moulin (1999). The key property in our axiom system is Group Demand Monotonicity, asking that when a group of agents raise their demands, not all of them should pay less.

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Bibliographic Info

Paper provided by Centre interuniversitaire de recherche en économie quantitative, CIREQ in its series Cahiers de recherche with number 01-2010.

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Length: 25 pages
Date of creation: 2010
Date of revision:
Handle: RePEc:mtl:montec:01-2010

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Keywords: Cost sharing; serial method; Group Demand Monotonicity; Shapley value;

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  1. Martin Shubik, 1962. "Incentives, Decentralized Control, the Assignment of Joint Costs and Internal Pricing," Management Science, INFORMS, vol. 8(3), pages 325-343, April.
  2. SPRUMONT, Yves, 2004. "Nearly Serial Sharing Methods," Cahiers de recherche 17-2004, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
  3. Sprumont, Y., 1996. "Ordinal Cost Sharing," Cahiers de recherche 9624, Universite de Montreal, Departement de sciences economiques.
  4. Moulin, Herve, 1995. "On Additive Methods to Share Joint Costs," Mathematical Social Sciences, Elsevier, vol. 30(1), pages 98-99, August.
  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 & Sprumont, Yves, 2003. "On Demand Responsiveness in Additive Cost Sharing," Working Papers 2003-10, Rice University, Department of Economics.
  7. Moulin, Herve & Sprumont, Yves, 2002. "Responsibility and Cross-Subsidization in Cost Sharing," Working Papers 2002-05, Rice University, Department of Economics.
  8. Moulin, Herve & Shenker, Scott, 1992. "Serial Cost Sharing," Econometrica, Econometric Society, vol. 60(5), pages 1009-37, September.
  9. 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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