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Sharing the cost of redundant items.

Authors :
Hougaard, Jens Leth
Moulin, Hervé
Source :
Games & Economic Behavior. Sep2014, Vol. 87, p339-352. 14p.
Publication Year :
2014

Abstract

We ask how to share the cost of finitely many public goods (items) among users with different needs: some smaller subsets of items are enough to serve the needs of each user, yet the cost of all items must be covered, even if this entails inefficiently paying for redundant items. Typical examples are network connectivity problems when an existing (possibly inefficient) network must be maintained. We axiomatize a family cost ratios based on simple liability indices , one for each agent and for each item, measuring the relative worth of this item across agents, and generating cost allocation rules additive in costs. [ABSTRACT FROM AUTHOR]

Details

Language :
English
ISSN :
08998256
Volume :
87
Database :
Academic Search Index
Journal :
Games & Economic Behavior
Publication Type :
Academic Journal
Accession number :
98140428
Full Text :
https://doi.org/10.1016/j.geb.2014.05.010