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A Discrete Cost Sharing Model with Technological Cooperation

Eric Bahel () and Christian Trudeau ()

Working Papers from Virginia Polytechnic Institute and State University, Department of Economics

Abstract: This paper proposes a setting that allows for technological cooperation in the cost sharing model. Dealing with discrete demands, we study two properties: Additivity and Dummy. We show that these properties are insuffcient to guarantee a unit-flow representation similar to that of Wang (1999). To obtain a characterization of unit flows, we strengthen the Dummy axiom and introduce a property that requires the cost share of every agent to be nondecreasing in the incremental costs generated by their demand. Finally, a fairness requirement as to the compensation of technological cooperation is examined.

Keywords: cost sharing; demand; technology; cooperation; fow methods (search for similar items in EconPapers)
Date: 2011
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ftp://repec.econ.vt.edu/Papers/Bahel/sharing_techno.pdf First version, 2010 (application/pdf)
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Journal Article: A discrete cost sharing model with technological cooperation (2013) Downloads
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