Lecture 14 Cost Sharing Schemes
نویسنده
چکیده
Consider a scenario where a service is provided to a set of users at a certain net cost. A natural question to ask is, how should one divide the cost amongst the users, i.e., what is a good pricing policy or a cost sharing scheme? Formally, let U be the set of users and C be the cost function that assigns a service cost C(S) to each S ⊆ U . It may help to keep the example of an internet service provider (ISP) in mind. In this case, U is the set of users that desire internet service and C(S) is the monetary cost incurred by the ISP in providing the service to users in S. We are interested in a scheme that determines how this cost is divided up and recovered from the users.
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