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Cost allocation and airport problems

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  • Thomson, William

Abstract

We consider the problem of dividing the cost of a facility when agents can be ordered in terms of the needs 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.

Suggested Citation

  • Thomson, William, 2024. "Cost allocation and airport problems," Mathematical Social Sciences, Elsevier, vol. 131(C), pages 17-31.
    • Handle: RePEc:eee:matsoc:v:131:y:2024:i:c:p:17-31
    DOI: 10.1016/j.mathsocsci.2024.03.007
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    References listed on IDEAS

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