Cost Allocation with Limited Information
This article investigates progressive development of Aumann-Shapley cost allocation in a multilevel organizational or production structure. In particular, we study a linear parametric programming setup utilizing the Dantzig-Wolfe decomposition procedure. Typically cost allocation takes place after all activities have been performed, for example by finishing all outputs. Here the allocation is made progressively with suggestions for activities. I other words cost allocation is performed in parallel for example with a production planning process. This development does not require detailed information about some technical constraints in order to make the cost allocation.
|Date of creation:||Mar 2013|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.ifro.ku.dk/english/|
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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.
- 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.
- William J. Baumol & Tibor Fabian, 1964. "Decomposition, Pricing for Decentralization and External Economies," Management Science, INFORMS, vol. 11(1), pages 1-32, September.
- Moeseke, Paul V & Ghellinck, Guy, 1969. "Decentralization in Separable Programming," Econometrica, Econometric Society, vol. 37(1), pages 73-78, January.
- J. Barkley Rosser, 2009. "Introduction," Chapters, in: Handbook of Research on Complexity, chapter 1 Edward Elgar.
- Castano-Pardo, Alberto & Garcia-Diaz, Alberto, 1995. "Highway cost allocation: An application of the theory of nonatomic games," Transportation Research Part A: Policy and Practice, Elsevier, vol. 29(3), pages 187-203, May.
When requesting a correction, please mention this item's handle: RePEc:foi:msapwp:01_2013. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Geir Tveit)
If references are entirely missing, you can add them using this form.