Sharing cost of network among users with differentiated willingness to pay

Elena Panova

Games and Economic Behavior, 2023, vol. 142, issue C, 666-689

Abstract: We consider the problem of sharing the cost of a fixed tree-network among users with differentiated willingness to pay for the good supplied through the network. We find that the associated value-sharing problem is convex, hence, the core is large and we axiomatize a new, computationally simple core selection based on the idea of proportionality.

Keywords: Sharing network cost; Core; Proportional allocation (search for similar items in EconPapers)
JEL-codes: C71 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:gamebe:v:142:y:2023:i:c:p:666-689

DOI: 10.1016/j.geb.2023.09.009

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