A Discrete Cost Sharing Model with Technological Cooperation
This paper proposes a setting that allows for technological cooperation in the cost sharing model. Dealing with discrete demands, we study two properties: Additivity and Dummy. We show that these properties are insuffcient to guarantee a unit-flow representation similar to that of Wang (1999). To obtain a characterization of unit flows, we strengthen the Dummy axiom and introduce a property that requires the cost share of every agent to be nondecreasing in the incremental costs generated by their demand. Finally, a fairness requirement as to the compensation of technological cooperation is examined.
|Date of creation:||2011|
|Date of revision:|
|Contact details of provider:|| Postal: 3016 Pamplin Hall, Blacksburg, VA 24061-0316|
Web page: http://www.econ.vt.edu
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.:
- Moulin, Herve & Sprumont, Yves, 2004.
"On Demand Responsiveness in Additive Cost Sharing,"
2004-03, Rice University, Department of Economics.
- Moulin, Herve & Sprumont, Yves, 2002.
"Responsibility and Cross-Subsidization in Cost Sharing,"
2002-05, Rice University, Department of Economics.
- Moulin, Herve & Sprumont, Yves, 2006. "Responsibility and cross-subsidization in cost sharing," Games and Economic Behavior, Elsevier, vol. 55(1), pages 152-188, April.
- Hervé MOULIN & Yves SPRUMONT, 2002. "Responsibility And Cross-Subsidization In Cost Sharing," Cahiers de recherche 19-2002, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
- MOULIN, Hervé & SPRUMONT, Yves., 2002. "Responsibility and Cross-Subsidization in Cost Sharing," Cahiers de recherche 2002-19, Universite de Montreal, Departement de sciences economiques.
- Hsiao Chih-Ru & Raghavan T. E. S., 1993. "Shapley Value for Multichoice Cooperative Games, I," Games and Economic Behavior, Elsevier, vol. 5(2), pages 240-256, April.
- Wang, YunTong, 1999. "The additivity and dummy axioms in the discrete cost sharing model," Economics Letters, Elsevier, vol. 64(2), pages 187-192, August.
- Eric Friedman & Moulin, Herve, 1995.
"Three Methods to Share Joint Costs or Surplus,"
95-38, Duke University, Department of Economics.
- Yves Sprumont, 2005. "On the Discrete Version of the Aumann-Shapley Cost-Sharing Method," Econometrica, Econometric Society, vol. 73(5), pages 1693-1712, 09.
- Trudeau, Christian, 2009. "Cost sharing with multiple technologies," Games and Economic Behavior, Elsevier, vol. 67(2), pages 695-707, November.
- Matthew O. Jackson, 2003.
"Allocation Rules for Network Games,"
1160, California Institute of Technology, Division of the Humanities and Social Sciences.
- Bergantinos, Gustavo & Vidal-Puga, Juan J., 2007.
"A fair rule in minimum cost spanning tree problems,"
Journal of Economic Theory,
Elsevier, vol. 137(1), pages 326-352, November.
- Gustavo Bergantiños & Juan Vidal-Puga, 2005. "A fair rule in minimum cost spanning tree problems," Game Theory and Information 0504001, EconWPA.
- Eric J. Friedman, 2004. "Paths and consistency in additive cost sharing," International Journal of Game Theory, Springer;Game Theory Society, vol. 32(4), pages 501-518, 08.
- Moulin, Herve, 1995.
"On Additive Methods to Share Joint Costs,"
Mathematical Social Sciences,
Elsevier, vol. 30(1), pages 98-99, August.
- Jelnov, Artyom & Tauman, Yair, 2009. "The private value of a patent: A cooperative approach," Mathematical Social Sciences, Elsevier, vol. 58(1), pages 84-97, July.
When requesting a correction, please mention this item's handle: RePEc:vpi:wpaper:e07-28. 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: (Djavad Salehi-Isfahani)
If references are entirely missing, you can add them using this form.