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Sharing cost of network among users with differentiated willingness to pay

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  • Panova, Elena

Abstract

We consider the problem of sharing the cost of a fixed tree-network among users with differentiated willingness to pay for the good supplied through the network. We find that the associated value-sharing problem is convex, hence, the core is large and we axiomatize a new, computationally simple core selection based on the idea of proportionality.

Suggested Citation

  • Panova, Elena, 2023. "Sharing cost of network among users with differentiated willingness to pay," Games and Economic Behavior, Elsevier, vol. 142(C), pages 666-689.
    • Handle: RePEc:eee:gamebe:v:142:y:2023:i:c:p:666-689
    DOI: 10.1016/j.geb.2023.09.009
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    References listed on IDEAS

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    More about this item

    Keywords

    Sharing network cost; Core; Proportional allocation;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games

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