Economics at your fingertips  

original papers: Proportionally adjusted marginal pricing method to share joint costs

Yuntong Wang ()

Review of Economic Design, 2002, vol. 7, issue 2, 205-211

Abstract: We consider the cost sharing problem with divisible demands of heterogeneous goods. We propose a cost sharing method called Proportionally Adjusted Marginal Pricing (PAMP) method. PAMP is a nonadditive (in the cost function) extension of average cost pricing. We introduce an axiom called Local Independence (LI) and use LI together with Continuity, Proportionality, and Scale Invariance to characterize PAMP.

Keywords: Nonadditive; cost; sharing; methods (search for similar items in EconPapers)
JEL-codes: C71 D62 D63 (search for similar items in EconPapers)
Date: 2002-10-09
Note: Received: 23 March 2001 / Accepted: 16 November 2001
References: Add references at CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link) (application/pdf)
Access to the full text of the articles in this series is restricted

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:

Ordering information: This journal article can be ordered from

Access Statistics for this article

Review of Economic Design is currently edited by Atila Abdulkadiroglu, Fuhito Kojima and Tilman Börgers

More articles in Review of Economic Design from Springer, Society for Economic Design
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

Page updated 2022-07-31
Handle: RePEc:spr:reecde:v:7:y:2002:i:2:p:205-211