Sharing the cost of redundant items

Publikation: Bidrag til tidsskriftTidsskriftartikelForskningfagfællebedømt

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.
OriginalsprogEngelsk
TidsskriftGames and Economic Behavior
Vol/bind87
Sider (fra-til)339–352
Antal sider14
ISSN0899-8256
DOI
StatusUdgivet - 2014

ID: 119291027