Sharing the cost of redundant items
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Sharing the cost of redundant items. / Hougaard, Jens Leth; Moulin, Hervé.
In: Games and Economic Behavior, Vol. 87, 2014, p. 339–352.Research output: Contribution to journal › Journal article › Research › peer-review
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TY - JOUR
T1 - Sharing the cost of redundant items
AU - Hougaard, Jens Leth
AU - Moulin, Hervé
PY - 2014
Y1 - 2014
N2 - 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.
AB - 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.
U2 - 10.1016/j.geb.2014.05.010
DO - 10.1016/j.geb.2014.05.010
M3 - Journal article
VL - 87
SP - 339
EP - 352
JO - Games and Economic Behavior
JF - Games and Economic Behavior
SN - 0899-8256
ER -
ID: 119291027