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Sharing Costs and the Compromise Solution

Author

Listed:
  • José, Alcalde

    (University of Alicante, D. Quantitative Methods and Economic Theory)

  • Josep E., Peris

    (University of Alicante, D. Quantitative Methods and Economic Theory)

Abstract

This paper introduces the Compromise rule for cost sharing problems. This rule fairly combines the equity and the growth-encouraging key principles. The way in which it is described also allows to endogenously identify the agents belonging to a “middle class” depending on how the costs of satisfying individual demands are distributed.

Suggested Citation

  • José, Alcalde & Josep E., Peris, 2017. "Sharing Costs and the Compromise Solution," QM&ET Working Papers 17-3, University of Alicante, D. Quantitative Methods and Economic Theory.
    • Handle: RePEc:ris:qmetal:2017_003
    as

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    File URL: https://web.ua.es/es/dmcte/documentos/qmetwp1703.pdf
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    References listed on IDEAS

    as
    1. 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.
    2. Young, H. P., 1988. "Distributive justice in taxation," Journal of Economic Theory, Elsevier, vol. 44(2), pages 321-335, April.
    3. Alcalde, José & Peris, Josep E., 2017. "Equal Awards versus Equal Losses in Bankruptcy Problems," QM&ET Working Papers 17-2, University of Alicante, D. Quantitative Methods and Economic Theory.
    4. K. J. Arrow & A. K. Sen & K. Suzumura (ed.), 2002. "Handbook of Social Choice and Welfare," Handbook of Social Choice and Welfare, Elsevier, edition 1, volume 1, number 1.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Cost Sharing Rule; Local Progressiveness; Compromise Rule;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations

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