Additive cost sharing on a tree
AbstractThis paper considers the cost sharing problem on a fixed tree network. It provides a characterization of the family of cost sharing methods satisfying the axioms of Additivity and the Independence of Irrelevant Costs. Additivity is a classical axiom. The Independence of Irrelevant Costs axiom is new and replaces the traditional Dummy axiom to capture the network structure of the model.
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Bibliographic InfoPaper provided by University of Windsor, Department of Economics in its series Working Papers with number 1307.
Length: 9 pages
Date of creation: 25 Aug 2013
Date of revision:
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Cost sharing; tree network.;
Find related papers by JEL classification:
- C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
- D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-08-31 (All new papers)
- NEP-GTH-2013-08-31 (Game Theory)
- NEP-TRE-2013-08-31 (Transport Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- S. H. Tijs & M. Koster & E. Molina & Y. Sprumont, 2002.
"Sharing the cost of a network: core and core allocations,"
International Journal of Game Theory,
Springer, vol. 30(4), pages 567-599.
- Koster, M.A.L. & Molina, E. & Sprumont, Y. & Tijs, S.H., 2001. "Sharing the cost of a network: Core and core allocations," Open Access publications from Tilburg University urn:nbn:nl:ui:12-91407, Tilburg University.
- Moulin, Herve & Laigret, Francois, 2011. "Equal-need sharing of a network under connectivity constraints," Games and Economic Behavior, Elsevier, vol. 72(1), pages 314-320, May.
- Jens Leth Hougaard & Hervé Moulin, 2012. "Sharing the Cost of Redundant Items," MSAP Working Paper Series 06_2012, University of Copenhagen, Department of Food and Resource Economics.
- S. C. Littlechild & G. Owen, 1973. "A Simple Expression for the Shapley Value in a Special Case," Management Science, INFORMS, vol. 20(3), pages 370-372, November.
- Wang, YunTong, 1999. "The additivity and dummy axioms in the discrete cost sharing model," Economics Letters, Elsevier, vol. 64(2), pages 187-192, August.
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