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A discrete cost sharing model with technological cooperation

Listed author(s):
  • Eric Bahel

    ()

  • Christian Trudeau

    ()

This article 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 insufficient to guarantee a unit-flow representation similar to that of Wang (Econ Lett 64:187–192, 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 non-decreasing in the incremental costs generated by their demand. Finally, a fairness requirement as to the compensation of technological cooperation is examined. Copyright Springer-Verlag 2013

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File URL: http://hdl.handle.net/10.1007/s00182-012-0320-3
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Article provided by Springer & Game Theory Society in its journal International Journal of Game Theory.

Volume (Year): 42 (2013)
Issue (Month): 2 (May)
Pages: 439-460

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Handle: RePEc:spr:jogath:v:42:y:2013:i:2:p:439-460
DOI: 10.1007/s00182-012-0320-3
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Order Information: Web: http://www.springer.com/economics/economic+theory/journal/182/PS2

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  1. Yves Sprumont, 2005. "On the Discrete Version of the Aumann-Shapley Cost-Sharing Method," Econometrica, Econometric Society, vol. 73(5), pages 1693-1712, 09.
  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. Jackson, Matthew O., 2005. "Allocation rules for network games," Games and Economic Behavior, Elsevier, vol. 51(1), pages 128-154, April.
  5. Bergantinos, Gustavo & Vidal-Puga, Juan J., 2007. "A fair rule in minimum cost spanning tree problems," Journal of Economic Theory, Elsevier, vol. 137(1), pages 326-352, November.
  6. Jelnov, Artyom & Tauman, Yair, 2009. "The private value of a patent: A cooperative approach," Mathematical Social Sciences, Elsevier, vol. 58(1), pages 84-97, July.
  7. Hervé Moulin, 1995. "On Additive Methods To Share Joint Costs," The Japanese Economic Review, Japanese Economic Association, vol. 46(4), pages 303-332, December.
  8. Eric J. Friedman, 2004. "Paths and consistency in additive cost sharing," International Journal of Game Theory, Springer;Game Theory Society, vol. 32(4), pages 501-518, 08.
  9. Trudeau, Christian, 2009. "Cost sharing with multiple technologies," Games and Economic Behavior, Elsevier, vol. 67(2), pages 695-707, November.
  10. 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.
  11. Hsiao Chih-Ru & Raghavan T. E. S., 1993. "Shapley Value for Multichoice Cooperative Games, I," Games and Economic Behavior, Elsevier, vol. 5(2), pages 240-256, April.
  12. 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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