Allocation of fixed costs: characterization of the (dual) weighted Shapley value
The weighted value was introduced by Shapley in 1953 as an asymmetric version of his value. Since then several axiomatizations have been proposed including one by Shapley in 1981 specifically addressed to cost allocation, a context in which weights appear naturally. It was at the occasion of a comment in which he only stated the axioms. The present paper offers a proof of Shapley's statement as well as an alternative set of axioms. It is shown that the value is the unique rule that allocates additional fixed costs fairly: only the players who are concerned contribute to the fixed cost and they contribute in proportion to their weights. A particular attention is given to the case where some players are assigned a zero weight.
|Date of creation:||2011|
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- Thierry Burger-Helmchen & Laurence Frank, 2011.
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- repec:wsi:igtrxx:v:13:y:2011:i:02:n:s0219198911002915 is not listed on IDEAS Full references (including those not matched with items on IDEAS)