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Coherent Cost-Sharing Rules

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  • SPRUMONT, Yves

Abstract

We reconsider the discrete version of the axiomatic cost-sharing model. We propose a condition of (informational) coherence requiring that not all informational refinements of a given problem be solved differently from the original problem. We prove that strictly coherent linear cost-sharing rules must be simple random-order rules.

Suggested Citation

  • SPRUMONT, Yves, 1999. "Coherent Cost-Sharing Rules," Cahiers de recherche 9902, Universite de Montreal, Departement de sciences economiques.
    • Handle: RePEc:mtl:montde:9902
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    File URL: http://hdl.handle.net/1866/469
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    Cited by:

    1. Albizuri, M.J. & Díez, H. & Sarachu, A., 2014. "Monotonicity and the Aumann–Shapley cost-sharing method in the discrete case," European Journal of Operational Research, Elsevier, vol. 238(2), pages 560-565.
    2. Moulin, Herve & Sprumont, Yves, 2006. "Responsibility and cross-subsidization in cost sharing," Games and Economic Behavior, Elsevier, vol. 55(1), pages 152-188, April.
    3. Moulin, Herve & Sprumont, Yves, 2005. "On demand responsiveness in additive cost sharing," Journal of Economic Theory, Elsevier, vol. 125(1), pages 1-35, November.
    4. Christophe Labreuche & Michel Grabisch, 2008. "A value for bi-cooperative games," Post-Print halshs-00308738, HAL.
    5. Moulin, Herve & Vohra, Rakesh, 2003. "Characterization of additive cost sharing methods," Economics Letters, Elsevier, vol. 80(3), pages 399-407, September.
    6. Moulin, Herve, 2002. "Axiomatic cost and surplus sharing," Handbook of Social Choice and Welfare, in: K. J. Arrow & A. K. Sen & K. Suzumura (ed.), Handbook of Social Choice and Welfare, edition 1, volume 1, chapter 6, pages 289-357, Elsevier.

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    More about this item

    Keywords

    cost sharing; additivity; random order;
    All these keywords.

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General

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