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Suppose that a group have demands for some good. Each one of them owns a technology to produce the good, with these technologies varying in their effectiveness. We consider technologies exhibiting either increasing return to scale (IRS) or decreasing returns to scale (DRS). In each case, we...
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In the cost sharing model with technological cooperation, we investigate the implications of a number of consistency requirements. In a context where the enforcing authority cannot prevent agents from splitting or merging their demands (in order to reduce their cost shares), the methods used...
Persistent link: https://www.econbiz.de/10010901392
For the class of shortest path games, we propose a family of new cost sharing rules satisfying core selection. These rules allocate cost shares to the players according to some lexicographic preference relation. The average of all such lexicographic rules is shown to satisfy many desirable...
Persistent link: https://www.econbiz.de/10010778624
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)....
Persistent link: https://www.econbiz.de/10009644136
In the discrete cost sharing model with technological cooperation (Bahel and Trudeau (IJGT, 2013)), we study the implications of a number of properties that strengthen the well-known Dummy axiom. Our main axiom, which requires that costless units of demands do not affect the cost shares, is used...
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