Additive cost sharing on a tree

Debing Ni and Yuntong Wang ()
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Debing Ni: School of Management, University of Electronic Science and Technology of China
Yuntong Wang: Department of Economics, University of Windsor

No 1307, Working Papers from University of Windsor, Department of Economics

Abstract: 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.

Keywords: Cost sharing; tree network. (search for similar items in EconPapers)
JEL-codes: C71 D70 (search for similar items in EconPapers)
Pages: 9 pages
Date: 2013-08-25
New Economics Papers: this item is included in nep-gth and nep-tre
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http://web2.uwindsor.ca/economics/RePEc/wis/pdf/1307.pdf First version, 2013 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:wis:wpaper:1307

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