IDEAS home Printed from https://ideas.repec.org/a/eee/ejores/v238y2014i2p560-565.html
   My bibliography  Save this article

Monotonicity and the Aumann–Shapley cost-sharing method in the discrete case

Author

Listed:
  • Albizuri, M.J.
  • Díez, H.
  • Sarachu, A.

Abstract

We give an axiomatization of the Aumann–Shapley cost-sharing method in the discrete case by means of monotonicity and no merging or splitting (Sprumont, 2005). Monotonicity has not yet been employed to characterize this method in such a case, by contrast with the case in which goods are perfectly divisible, for which Monderer and Neyman (1988) and Young (1985b) characterize the Aumann–Shapley price mechanism.

Suggested Citation

  • Albizuri, M.J. & Díez, H. & Sarachu, A., 2014. "Monotonicity and the Aumann–Shapley cost-sharing method in the discrete case," European Journal of Operational Research, Elsevier, vol. 238(2), pages 560-565.
  • Handle: RePEc:eee:ejores:v:238:y:2014:i:2:p:560-565
    DOI: 10.1016/j.ejor.2014.03.044
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0377221714002835
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.ejor.2014.03.044?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Hougaard, Jens Leth & Tind, Jørgen, 2009. "Cost allocation and convex data envelopment," European Journal of Operational Research, Elsevier, vol. 194(3), pages 939-947, May.
    2. Yves Sprumont, 2005. "On the Discrete Version of the Aumann-Shapley Cost-Sharing Method," Econometrica, Econometric Society, vol. 73(5), pages 1693-1712, September.
    3. Bergantinos, Gustavo & Vidal-Puga, Juan J., 2006. "Additive rules in discrete allocation problems," European Journal of Operational Research, Elsevier, vol. 172(3), pages 971-978, August.
    4. Young, H Peyton, 1985. "Producer Incentives in Cost Allocation," Econometrica, Econometric Society, vol. 53(4), pages 757-765, July.
    5. 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.
    6. Pierru, Axel, 2010. "Allocating the CO2 emissions of an oil refinery with Aumann-Shapley prices: A reply," Energy Economics, Elsevier, vol. 32(3), pages 746-748, May.
    7. Sprumont, Yves, 1998. "Ordinal Cost Sharing," Journal of Economic Theory, Elsevier, vol. 81(1), pages 126-162, July.
    8. Calvo, Emilio & Santos, Juan Carlos, 2000. "A value for multichoice games," Mathematical Social Sciences, Elsevier, vol. 40(3), pages 341-354, November.
    9. Pradeep Dubey & Abraham Neyman & Robert James Weber, 1981. "Value Theory Without Efficiency," Mathematics of Operations Research, INFORMS, vol. 6(1), pages 122-128, February.
    10. Sprumont, Yves, 2000. "Coherent Cost-Sharing Rules," Games and Economic Behavior, Elsevier, vol. 33(1), pages 126-144, October.
    11. Samet, Dov & Tauman, Yair, 1982. "The Determination of Marginal Cost Prices under a Set of Axioms," Econometrica, Econometric Society, vol. 50(4), pages 895-909, July.
    12. Richard P. McLean & Amit Pazgal & William W. Sharkey, 2004. "Potential, Consistency, and Cost Allocation Prices," Mathematics of Operations Research, INFORMS, vol. 29(3), pages 602-623, August.
    13. Leonard J. Mirman & Yair Tauman, 1982. "Demand Compatible Equitable Cost Sharing Prices," Mathematics of Operations Research, INFORMS, vol. 7(1), pages 40-56, February.
    14. Hervé Moulin, 1995. "On Additive Methods To Share Joint Costs," The Japanese Economic Review, Japanese Economic Association, vol. 46(4), pages 303-332, December.
    15. Louis J. Billera & David C. Heath, 1982. "Allocation of Shared Costs: A Set of Axioms Yielding A Unique Procedure," Mathematics of Operations Research, INFORMS, vol. 7(1), pages 32-39, February.
    16. Martin Shubik, 1962. "Incentives, Decentralized Control, the Assignment of Joint Costs and Internal Pricing," Management Science, INFORMS, vol. 8(3), pages 325-343, April.
    17. Eric Bahel & Christian Trudeau, 2013. "A discrete cost sharing model with technological cooperation," International Journal of Game Theory, Springer;Game Theory Society, vol. 42(2), pages 439-460, May.
    18. Wang, YunTong, 1999. "The additivity and dummy axioms in the discrete cost sharing model," Economics Letters, Elsevier, vol. 64(2), pages 187-192, August.
    19. Krus, Lech & Bronisz, Piotr, 2000. "Cooperative game solution concepts to a cost allocation problem," European Journal of Operational Research, Elsevier, vol. 122(2), pages 258-271, April.
    20. Chen Chen & Garud Iyengar & Ciamac C. Moallemi, 2013. "An Axiomatic Approach to Systemic Risk," Management Science, INFORMS, vol. 59(6), pages 1373-1388, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hervé Moulin & Yves Sprumont, 2007. "Fair allocation of production externalities : recent results," Revue d'économie politique, Dalloz, vol. 117(1), pages 7-36.
    2. Moulin, Herve & Sprumont, Yves, 2006. "Responsibility and cross-subsidization in cost sharing," Games and Economic Behavior, Elsevier, vol. 55(1), pages 152-188, April.
    3. Moulin, Herve & Sprumont, Yves, 2005. "On demand responsiveness in additive cost sharing," Journal of Economic Theory, Elsevier, vol. 125(1), pages 1-35, November.
    4. 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.
    5. Friedman, Eric & Moulin, Herve, 1999. "Three Methods to Share Joint Costs or Surplus," Journal of Economic Theory, Elsevier, vol. 87(2), pages 275-312, August.
    6. Sprumont, Yves, 2000. "Coherent Cost-Sharing Rules," Games and Economic Behavior, Elsevier, vol. 33(1), pages 126-144, October.
    7. Calvo, E. & Santos, J. C., 2001. "Prices in Mixed Cost Allocation Problems," Games and Economic Behavior, Elsevier, vol. 37(2), pages 243-258, November.
    8. Wang, Yun-Tong & Zhu, Daxin, 2002. "Ordinal proportional cost sharing," Journal of Mathematical Economics, Elsevier, vol. 37(3), pages 215-230, May.
    9. Yves Sprumont, 2008. "Nearly serial sharing methods," International Journal of Game Theory, Springer;Game Theory Society, vol. 37(2), pages 155-184, June.
    10. Larrea, C. & Santos, J.C., 2007. "A characterization of the pseudo-average cost method," Mathematical Social Sciences, Elsevier, vol. 53(2), pages 140-149, March.
    11. Larrea, Concepcion & Santos, J.C., 2006. "Cost allocation schemes: An asymptotic approach," Games and Economic Behavior, Elsevier, vol. 57(1), pages 63-72, October.
    12. Yves Sprumont, 2010. "An Axiomatization of the Serial Cost-Sharing Method," Econometrica, Econometric Society, vol. 78(5), pages 1711-1748, September.
    13. Eric Bahel & Christian Trudeau, 2018. "Consistency requirements and pattern methods in cost sharing problems with technological cooperation," International Journal of Game Theory, Springer;Game Theory Society, vol. 47(3), pages 737-765, September.
    14. Boonen, Tim J. & De Waegenaere, Anja & Norde, Henk, 2020. "A generalization of the Aumann–Shapley value for risk capital allocation problems," European Journal of Operational Research, Elsevier, vol. 282(1), pages 277-287.
    15. Friedman, Eric J., 2012. "Asymmetric Cost Sharing mechanisms," Games and Economic Behavior, Elsevier, vol. 75(1), pages 139-151.
    16. Boonen, Tim J. & Tsanakas, Andreas & Wüthrich, Mario V., 2017. "Capital allocation for portfolios with non-linear risk aggregation," Insurance: Mathematics and Economics, Elsevier, vol. 72(C), pages 95-106.
    17. Eric Friedman, 1997. "Paths in Additive Cost Sharing," Departmental Working Papers 199706, Rutgers University, Department of Economics.
    18. Sprumont, Yves, 1998. "Ordinal Cost Sharing," Journal of Economic Theory, Elsevier, vol. 81(1), pages 126-162, July.
    19. Boonen, T.J. & De Waegenaere, A.M.B. & Norde, H.W., 2012. "A Generalization of the Aumann-Shapley Value for Risk Capital Allocation Problems," Other publications TiSEM 2c502ef8-76f0-47f5-ab45-1, Tilburg University, School of Economics and Management.
    20. David Lowing & Kevin Techer, 2022. "Marginalism, egalitarianism and efficiency in multi-choice games," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 59(4), pages 815-861, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ejores:v:238:y:2014:i:2:p:560-565. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eor .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.