Cost sharing solutions defined by non-negative eigenvectors

Begoña Subiza, José A. Silva-Reus and Josep E. Peris

European Journal of Operational Research, 2015, vol. 244, issue 2, 592-600

Abstract: The problem of sharing a cost M among n individuals, identified by some characteristic ci∈R+, appears in many real situations. Two important proposals on how to share the cost are the egalitarian and the proportional solutions. In different situations a combination of both distributions provides an interesting approach to the cost sharing problem. In this paper we obtain a family of (compromise) solutions associated to the Perron’s eigenvectors of Levinger’s transformations of a characteristics matrix A. This family includes both the egalitarian and proportional solutions, as well as a set of suitable intermediate proposals, which we analyze in some specific contexts, as claims problems and inventory cost games.

Keywords: Cost sharing; Egalitarian; Proportional; Perron’s eigenvector; Compromise solution (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0377221715000752
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Cost sharing solutions defined by non-negative eigenvectors (2013)
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:eee:ejores:v:244:y:2015:i:2:p:592-600

DOI: 10.1016/j.ejor.2015.01.055

Access Statistics for this article

European Journal of Operational Research is currently edited by Roman Slowinski, Jesus Artalejo, Jean-Charles. Billaut, Robert Dyson and Lorenzo Peccati

More articles in European Journal of Operational Research from Elsevier
Bibliographic data for series maintained by Catherine Liu ().