Aumann-Shapley Pricing: A Reconsideration of the Discrete Case

Yves Sprumont ()

Cahiers de recherche from Centre interuniversitaire de recherche en économie quantitative, CIREQ

Abstract: We reconsider the following cost-sharing problem: agent i = 1, ...,n demands a quantity xi of good i; the corresponding total cost C(x1, ..., xn) must be shared among the n agents. The Aumann-Shapley prices (p1, ..., pn) are given by the Shapley value of the game where each unit of each good is regarded as a distinct player. The Aumann-Shapley cost-sharing method assigns the cost share pixi to agent i. When goods come in indivisible units, we show that this method is characterized by the two standard axioms of Additivity and Dummy, and the property of No Merging or Splitting: agents never find it profitable to split or merge their demands.

Keywords: cost sharing; Aumann-Shapley pricing; merging; splitting (search for similar items in EconPapers)
JEL-codes: C71 D63 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2004
References: View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.cireqmontreal.com/wp-content/uploads/cahiers/11-2004-cah.pdf (application/pdf)

Related works:
Working Paper: Aumann-Shapley Pricing: A Reconsideration of the Discrete Case (2004)
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:mtl:montec:11-2004

Access Statistics for this paper

More papers in Cahiers de recherche from Centre interuniversitaire de recherche en économie quantitative, CIREQ Contact information at EDIRC.
Bibliographic data for series maintained by Sharon BREWER ().