In this paper, we present the different cost sharing methods one can find in the economic literature. We regroup the methods into three sets : the proportional methods, the cooperative game theory methods and the serial cost sharing methods. All those methods are presented through the stylized...

It is important that the choice of a cost sharing method be made on the basis of its general equity and consistency properties rather than on the basis of the results it may generate in a given application. In this paper, we partition the different methods according to whether they satisfy a...

In this document, we present the notion of a cost game, defined as a cooperative game where the gain from cooperation is the cost reduction obtained when the projects of a set of agents are realized in a coordinated way. The problem is then to decide how this gain will be shared among agents or...

In this paper, we present the main solution concepts for cooperative games, which have been used in the context of cost games. We put a special emphasis on the concept of core. We also present the concepts of semicore, von Neumann-Morgenstern stable set, nucleolus and Shapley value. However, we...

We provide results for the valuation of European style contingent claims for a large class of specifications of the underlying asset returns. Our valuation results obtain in a discrete time, infinite state-space setup using the no-arbitrage principle and an equivalent martingale measure. Our...

Equity risk measured by beta is of great interest to both academics and practitioners. Existing estimates of beta use historical returns. Many studies have found option-implied volatility to be a strong predictor of future realized volatility. We .nd that option-implied volatility and skewness...