Strategic properties of heterogeneous serial cost sharing

Strategic Properties of Heterogeneous Serial Cost Sharing

The \(a\) -serial cost sharing rule

A new family of cost sharing rules for cost sharing problems is proposed. This family generalizes the family of α-serial cost sharing rules (Albizuri, 2010) which contains the serial cost sharing rule (Moulin and Shenker, 1992) among others. Every rule of the family is characterized by means of two properties.

Mixed serial cost sharing

A new serial cost sharing rule, called mixed serial cost sharing, is defined on the class of cost functions which equal a sum of an increasing convex and increasing concave function. This rule is based on a particular decomposition principle known as complementary-slackness decomposition and it coincides with the original serial rule of Moulin and Shenker (1992) [Moulin, H., Shenker, S., 1992. ...

Decreasing serial cost sharing: an axiomatic characterization

The increasing serial cost sharing rule of Moulin and Shenker (Econometrica 60:1009–1037, 1992) and the decreasing serial rule of de Frutos (J Econ Theory 79:245–275, 1998) are known by their intuitive appeal and striking incentive properties. An axiomatic characterization of the increasing serial rule was provided by Moulin and Shenker (J Econ Theory 64:178–201, 1994). This paper gives an axio...

Fair Allocation of Production Externalities: Recent Results

We survey recent axiomatic results in the theory of cost-sharing. In this litterature, a method computes the individual cost shares assigned to the users of a facility for any profile of demands and any monotonic cost function. We discuss two theories taking radically different views of the asymmetries of the cost function. In the full responsibility theory, each agent is accountable for the pa...