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Additive cost sharing on a tree


Author Info

  • Debing Ni

    (School of Management, University of Electronic Science and Technology of China)

  • Yuntong Wang

    (Department of Economics, University of Windsor)

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    This 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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    File Function: First version, 2013
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    Bibliographic Info

    Paper provided by University of Windsor, Department of Economics in its series Working Papers with number 1307.

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    Length: 9 pages
    Date of creation: 25 Aug 2013
    Date of revision:
    Handle: RePEc:wis:wpaper:1307

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    Postal: 401 Sunset Avenue, Windsor, Ontario, N9B 3P4
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    Related research

    Keywords: Cost sharing; tree network.;

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    1. 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.
    2. 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.
    3. 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.
    4. Wang, YunTong, 1999. "The additivity and dummy axioms in the discrete cost sharing model," Economics Letters, Elsevier, vol. 64(2), pages 187-192, August.
    5. 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.
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