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Author: | Moulin, H. Shenker, S. |
Title: | Distributive and additive costsharing of an homogeneous good |
Journal: | Games and Economic Behavior
1999 : MAY, VOL. 27:2, p. 299-330 |
Index terms: | GAMES ECONOMIC BEHAVIOUR DEMAND |
Language: | eng |
Abstract: | Individual users demand different quantities of a homogeneous good produced under variable returns. The authors describe the family of costsharing methods that allocate costs in proportion to demands when returns are constant, and commute with the additivity and composition of cost functions. Two simple such methods are average cost pricing and incremental costsharing. All other methods in the family combine elements of the average cost and incremental ones. |
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