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Strategyproof Sharing of Submodular Access Costs: Budget Balance versus Efficiency

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  • Moulin, Herve
  • Shenker, Scott

Abstract

A given set of users share the submodular cost of access to a network (or, more generally, the submodular cost of any idiosyncratic binary good). We compare strategyproof mechanisms that serve the efficient set of users (but do not necessarily balance the budget) with those that exactly cover costs (but are not necessarily efficient). Under the requirements of individual rationality (guarante eing voluntary participation) and consumer sovereignty (an agent will obtain access if his willingness to pay is high enough), we find:

Suggested Citation

  • Moulin, Herve & Shenker, Scott, 1996. "Strategyproof Sharing of Submodular Access Costs: Budget Balance versus Efficiency," Working Papers 96-31, Duke University, Department of Economics.
  • Handle: RePEc:duk:dukeec:96-31
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    Cited by:

    1. Hervé Moulin, 2008. "The price of anarchy of serial, average and incremental cost sharing," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 36(3), pages 379-405, September.
    2. Yokoo, Makoto & Sakurai, Yuko & Matsubara, Shigeo, 2004. "The effect of false-name bids in combinatorial auctions: new fraud in internet auctions," Games and Economic Behavior, Elsevier, vol. 46(1), pages 174-188, January.
    3. Grahn-Voorneveld, Sofia, 2011. "Sharing costs in Swedish road ownership associations," Working papers in Transport Economics 2011:6, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
    4. Grahn-Voorneveld, Sofia, 2012. "Sharing costs in Swedish road ownership associations," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(4), pages 645-651.

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