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Sharing cost of network among users with differentiated willingness to pay

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  • Elena Panova

    (TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

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

  • Elena Panova, 2023. "Sharing cost of network among users with differentiated willingness to pay," Post-Print hal-04556220, HAL.
    • Handle: RePEc:hal:journl:hal-04556220
    DOI: 10.1016/j.geb.2023.09.009
    Note: View the original document on HAL open archive server: https://hal.science/hal-04556220
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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.

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