Distributive and Additive Costsharing of an Homogeneous Good

Herve Moulin and Scott Shenker

No 97-21, Working Papers from Duke University, Department of Economics

Abstract: We consider the sharing of the cost of producing a homogeneous good when the technology has variable returns and individuals have arbitrary demands. We give a full analytical description of the family of costsharing methods that allocate costs in propor tion to demands when returns are constant, and commute with the additivity and composition of cost functions.

JEL-codes: D63 D71 (search for similar items in EconPapers)
Date: 1997
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Published in GAMES AND ECONOMIC BEHAVIOR, Vol. 27, 1999, pages 299-330

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