Additive cost sharing on a tree
This paper considers the cost sharing problem on a fixed tree network. It provides a characterization of the family of cost sharing methods satisfying the axioms of Additivity and the Independence of Irrelevant Costs. Additivity is a classical axiom. The Independence of Irrelevant Costs axiom is new and replaces the traditional Dummy axiom to capture the network structure of the model.
|Date of creation:||25 Aug 2013|
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- Jens Leth Hougaard & Hervé Moulin, 2012.
"Sharing the Cost of Redundant Items,"
MSAP Working Paper Series
06_2012, University of Copenhagen, Department of Food and Resource Economics.
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- S. H. Tijs & M. Koster & E. Molina & Y. Sprumont, 2002. "Sharing the cost of a network: core and core allocations," International Journal of Game Theory, Springer, vol. 30(4), pages 567-599.
- Wang, YunTong, 1999. "The additivity and dummy axioms in the discrete cost sharing model," Economics Letters, Elsevier, vol. 64(2), pages 187-192, August.
- Moulin, Herve & Laigret, Francois, 2011. "Equal-need sharing of a network under connectivity constraints," Games and Economic Behavior, Elsevier, vol. 72(1), pages 314-320, May.
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