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Cost allocation and airport problems

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Author Info
William Thomson () (University of Rochester)

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Abstract

We consider the problem of dividing the cost of a facility when agents can be ordered in terms of the need they have for it, and accommodating an agent with a certain need allows accommodating all agents with lower needs at no extra cost. This problem is known as the “airport problem”, the facility being the runway. We review the literature devoted to its study, and formulate a number of open questions.

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File URL: http://rcer.econ.rochester.edu/RCERPAPERS/rcer_537.pdf
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Publisher Info
Paper provided by University of Rochester - Center for Economic Research (RCER) in its series RCER Working Papers with number 537.

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Length: 45 pages
Date of creation: Dec 2007
Date of revision:
Handle: RePEc:roc:rocher:537

Contact details of provider:
Postal: UNIVERSITY OF ROCHESTER, CENTER FOR ECONOMIC RESEARCH, DEPARTMENT OF ECONOMICS, HARKNESS 231 ROCHESTER NEW YORK 14627 U.S.A.

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Related research
Keywords: airport problem monotonicity consistency core Shapley value nucleolus.

This paper has been announced in the following NEP Reports:

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