original papers : Proportionally adjusted marginal pricing method to share joint costs
We consider the cost sharing problem with divisible demands of heterogeneous goods. We propose a cost sharing method called Proportionally Adjusted Marginal Pricing (PAMP) method. PAMP is a nonadditive (in the cost function) extension of average cost pricing. We introduce an axiom called Local Independence (LI) and use LI together with Continuity, Proportionality, and Scale Invariance to characterize PAMP.
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Volume (Year): 7 (2002)
Issue (Month): 2 ()
|Note:||Received: 23 March 2001 / Accepted: 16 November 2001|
|Contact details of provider:|| Web page: http://www.springer.com|
|Order Information:||Web: http://www.springer.com/economics/journal/10058|
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