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Decreasing Serial Cost Sharing: an Axiomatic Characterization

Author

Listed:
  • Jens Leth Hougaard

    (Department of Economics, University of Copenhagen)

  • Lars Peter Østerdal

    (Department of Economics, University of Copenhagen)

Abstract

The increasing serial cost sharing rule of Moulin and Shenker [Econometrica 60 (1992) 1009] and the decreasing serial rule of de Frutos [Journal of Economic Theory 79 (1998) 245] have attracted attention due to their intuitive appeal and striking incentive properties. An axiomatic characterization of the increasing serial rule was provided by Moulin and Shenker [Journal of Economic Theory 64 (1994) 178]. This paper gives an axiomatic characterization of the decreasing serial rule.

Suggested Citation

  • Jens Leth Hougaard & Lars Peter Østerdal, 2007. "Decreasing Serial Cost Sharing: an Axiomatic Characterization," Discussion Papers 07-02, University of Copenhagen. Department of Economics.
    • Handle: RePEc:kud:kuiedp:0702
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    References listed on IDEAS

    as
    1. 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.
    2. 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.
    3. Hougaard, Jens Leth & Thorlund-Petersen, Lars, 2001. "Mixed serial cost sharing," Mathematical Social Sciences, Elsevier, vol. 41(1), pages 51-68, January.
    4. Jens Hougaard & Lars Østerdal, 2009. "Decreasing serial cost sharing: an axiomatic characterization," International Journal of Game Theory, Springer;Game Theory Society, vol. 38(4), pages 469-479, November.
    5. Moulin, Herve & Shenker, Scott, 1992. "Serial Cost Sharing," Econometrica, Econometric Society, vol. 60(5), pages 1009-1037, September.
    6. Jens Leth Hougaard & Lars Thorlund-Petersen, 2000. "The stand-alone test and decreasing serial cost sharing," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 16(2), pages 355-362.
    7. Angeles de Frutos, M., 1998. "Decreasing Serial Cost Sharing under Economies of Scale," Journal of Economic Theory, Elsevier, vol. 79(2), pages 245-275, April.
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    Cited by:

    1. Jens Hougaard & Lars Østerdal, 2009. "Decreasing serial cost sharing: an axiomatic characterization," International Journal of Game Theory, Springer;Game Theory Society, vol. 38(4), pages 469-479, November.
    2. M. Albizuri & Henar Díez & Amaia Sarachu, 2014. "The reverse self-dual serial cost-sharing rule," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 22(2), pages 578-599, July.
    3. Jop Schouten & Mirjam GrooteSchaarsberg & Peter Borm, 2024. "Cost sharing methods for capacity restricted cooperative purchasing situations," Review of Economic Design, Springer;Society for Economic Design, vol. 28(2), pages 347-390, June.
    4. Pham, Ngoc Anh, 2019. "Lorenz comparison between Increasing serial and Shapley value cost-sharing rules," Economics Letters, Elsevier, vol. 179(C), pages 49-52.

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    More about this item

    Keywords

    serial cost sharing; cost allocation; axiomatic characterization;
    All these keywords.

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures

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