We consider the problem of sharing the fixed costs of facilities among a number of users. Although the problem can be formulated and solved as an Integer Programme this provides limited accounting information. Ways of overcoming this are suggested. In addition we consider the issue of fairness among different possible cost allocations and how such ‘fair’ costs may be derived

This note characterizes the optimal base for commodity taxation in the presence of administrative fixed costs varying across goods. For low tax rates, the optimal base only comprises commodities whose discouragement index is greater than the ratio of their administrative costs to the tax they yield. An illustration with UK data shows that a category of goods should be taxed only if the revenue ...

The cost absorbs all the expenses of production for a company at a certain level of the activity. For eliminating the influence of the fixed costs’s absorbtion and for a better supervision of other causes of digressions, the managers can apply the method of rational imputation of the fixed costs. The managers should, in some cases, take into consideration the total costs and not the unit costs....

This paper provides a direct test of how fixed export costs and productivity jointly determine firm-level export behavior. Using Chilean data, we construct indices of fixed export costs for each industry-region-year triplet and match them to domestic firms. Our empirical results show that firms facing higher fixed export costs are less likely to export, while those with higher productivity expo...

This paper provides necessary and sufficient conditions for the existence of a pure strategy Bertrand equilibrium in a model of price competition with fixed costs. It unveils an interesting and unexplored relationship between Bertrand competition and natural monopoly. That relationship points out that the non-subadditivity of the cost function at the output level corresponding to the oligopoly ...

This article develops a framework to analyze the impacts on resource development of efficient management practices that account for possible resource conserving technological changes. Compared with the traditional management practice ignoring these changes, efficient management may not delay or reduce resource development, depending on the level of the changes. Under efficient management, a hig...