Cost allocation and airport problems
We consider the problem of dividing the cost of a facility when agents can be ordered in terms of the need they have for it, and accommodating an agent with a certain need allows accommodating all agents with lower needs at no extra cost. This problem is known as the “airport problem”, the facility being the runway. We review the literature devoted to its study, and formulate a number of open questions.
|Date of creation:||Dec 2007|
|Contact details of provider:|| Postal: University of Rochester, Center for Economic Research, Department of Economics, Harkness 231 Rochester, New York 14627 U.S.A.|
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