This paper relates the classical Charnes, Cooper and Rhodes' (CCR) model in Data Envelopment Analysis (DEA) to the Weak Axiom of Profit Maximization (WAPM) in Firm Theory. Varian's (1990) firm theory analysis is extended from a single firm to multiple firms. This allows deriving the classical...

We consider the following dynamic tax-rebate program. In each period, a (fixed) quantity tax is imposed on each unit of the good consumed and the tax revenue is rebated back to the consumer in the next period. The program lasts for infinite number of periods. We consider consumer's dynamic...

This paper uses a game-theoretic framework to suggest the fair value for information extracted via data mining and shared between two retail-market competitors. Neither competitor has a dominant position in that market. For mutual benefit, the two players each owning a privileged information set...

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 dynamic...

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 establish a new envelope theorem in which the choice variables are discrete and the objective function and the constraints are Lipschitz continuous with respect to the parameters. The parameters can be ?nite or in?nite dimensional vectors in a Banach space. In an application, we revisit the...

For a tolled highway where consecutive segments allow vehicles to enter and exit unrestrictedly, we propose a simple toll pricing method. It is shown that the method is the unique method satisfying the classical axioms of Additivity and Dummy in the cost sharing literature, and the axioms of...

A set of agents is located along a river. Each agent consumes certain amount of water he receives from his part of the river basin and may sell certain amount to his downstream agent if it is mutually beneficial. Water trading is restricted to two neighboring agents and an agent can only pass...

This paper considers the cost sharing problem on a fixed tree network. It provides a characterization of the family of cost sharing methods satisfying the axioms of Additivity and the Independence of Irrelevant Costs. Additivity is a classical axiom. The Independence of Irrelevant Costs axiom is...

An airline lands in a number of airports in a region. An airport serves a number of airlines. Each airport charges a given amount of emission fees to those airlines using the airport. The total emission fees from all airports in the region must be shared among all airlines. We propose an...