A Discrete Cost Sharing Model with Technological Cooperation
AbstractThis paper proposes a setting that allows for technological cooperation in the cost sharing model. Dealing with discrete demands, we study two properties: Additivity and Dummy. We show that these properties are insuffcient to guarantee a unit-flow representation similar to that of Wang (1999). To obtain a characterization of unit flows, we strengthen the Dummy axiom and introduce a property that requires the cost share of every agent to be nondecreasing in the incremental costs generated by their demand. Finally, a fairness requirement as to the compensation of technological cooperation is examined.
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Bibliographic InfoPaper provided by Virginia Polytechnic Institute and State University, Department of Economics in its series Working Papers with number e07-28.
Length: 19 pages
Date of creation: 2011
Date of revision:
cost sharing; demand; technology; cooperation; fow methods;
Other versions of this item:
- Eric Bahel & Christian Trudeau, 2013. "A discrete cost sharing model with technological cooperation," International Journal of Game Theory, Springer, vol. 42(2), pages 439-460, May.
- C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-06-11 (All new papers)
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