Proportionally adjusted marginal pricing method to share joint costs

被引:0
|
作者
Wang Y. [1 ]
机构
[1] Faculty of Arts and Social Sciences, Sabanci University
关键词
Nonadditive cost sharing methods;
D O I
10.1007/s100580200066
中图分类号
学科分类号
摘要
We consider the cost sharing problem with divisible demands of heterogeneous goods. We propose a cost sharing method called Proportionally Adjusted Marginal Pricing (PAMP) method. PAMP is a nonadditive (in the cost function) extension of average cost pricing. We introduce an axiom called Local Independence (LI) and use LI together with Continuity, Proportionality, and Scale Invariance to characterize PAMP. © Springer-Verlag 2002.
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页码:205 / 211
页数:6
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