Cost Allocation with Limited Information

Jens Leth Hougaard () and Jørgen Tind
Additional contact information
Jens Leth Hougaard: Department of Food and Resource Economics, University of Copenhagen
Jørgen Tind: Department of Mathematical Sciences, University of Copenhagen

No 01_2013, MSAP Working Paper Series from University of Copenhagen, Department of Food and Resource Economics

Abstract: This article investigates progressive development of Aumann-Shapley cost allocation in a multilevel organizational or production structure. In particular, we study a linear parametric programming setup utilizing the Dantzig-Wolfe decomposition procedure. Typically cost allocation takes place after all activities have been performed, for example by finishing all outputs. Here the allocation is made progressively with suggestions for activities. I other words cost allocation is performed in parallel for example with a production planning process. This development does not require detailed information about some technical constraints in order to make the cost allocation.

Keywords: cost allocation; Aumann-Shapley prices; decomposition; parametric programming (search for similar items in EconPapers)
Pages: 13 pages
Date: 2013-03
New Economics Papers: this item is included in nep-eff
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://okonomi.foi.dk/workingpapers/MSAPpdf/MSAP2013/MSAP_WP01_2013.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:foi:msapwp:01_2013

Access Statistics for this paper

More papers in MSAP Working Paper Series from University of Copenhagen, Department of Food and Resource Economics Contact information at EDIRC.
Bibliographic data for series maintained by Geir Tveit ().