Sharing Costs and the Compromise Solution

Jose Alcalde and Josep E. Peris

No 17-3, QM&ET Working Papers from University of Alicante, D. Quantitative Methods and Economic Theory

Abstract: This paper introduces the Compromise rule for cost sharing problems. This rule fairly combines the equity and the growth-encouraging key principles. The way in which it is described also allows to endogenously identify the agents belonging to a “middle class” depending on how the costs of satisfying individual demands are distributed.

Keywords: Cost Sharing Rule; Local Progressiveness; Compromise Rule (search for similar items in EconPapers)
JEL-codes: C71 D63 D71 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2017-11-13
New Economics Papers: this item is included in nep-gth
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Persistent link: https://EconPapers.repec.org/RePEc:ris:qmetal:2017_003

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