We analyze optimal trading mechanisms in environments where each trader owns some units of a good to be traded and may be either a seller or a buyer, depending on the realization of privately observed valuations. First, the concept of virtual valuation is extended to ex ante unidentified...

Given the rapid growth in health care spending that is often attributed to technological change, a variety of price/cost control mechanisms are being used by many public and private institutions to curb that growth. While many of these mechanisms implicitly concern maximizing consumer surplus,...

Determining community structure in networks is fundamental to the analysis of the structural and functional properties of those networks, including social networks, computer networks, and biological networks. Modularity function Q, which was proposed by Newman and Girvan, was once the most...

A polluted river network is populated with agents (e.g., firms, villages, municipalities, or countries) located upstream and downstream. This river network must be cleaned, the costs of which must be shared among the agents. We model this problem as a cost sharing problem on a tree network....

We consider the cost sharing problem with divisible demands of heterogeneous goods. We propose a cost sharing method called Proportionally Adjusted Marginal Pricing (PAMP) method. PAMP is a nonadditive (in the cost function) extension of average cost pricing. We introduce an axiom called Local...

In each period of a dynamic tax-rebate program, a (fixed) quantity tax is imposed on each unit of a given good, and the tax revenue is rebated back to the consumer in the next period. The program lasts for infinite number of periods. The author considers a representative consumer’s...