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A polluted river network is populated with agents (e.g., firms, villages, municipalities, or countries) located upstream and downstream. This river network must be cleaned, the costs of which must be shared among the agents. We model this problem as a cost sharing problem on a tree network....
Persistent link: https://www.econbiz.de/10010987519
This paper considers the cost sharing problem on a fixed tree network. It provides a characterization of the family of cost sharing methods satisfying the axioms of Additivity and the Independence of Irrelevant Costs. Additivity is a classical axiom. The Independence of Irrelevant Costs axiom is...
Persistent link: https://www.econbiz.de/10010687819
A polluted river network is populated with agents (e.g., firms, villages, municipalities, or countries) located upstream and downstream. This river network must be cleaned, the costs of which must be shared among the agents. We model this problem as a cost sharing problem on a tree network....
Persistent link: https://www.econbiz.de/10011112733
For a tolled highway where consecutive segments allow vehicles to enter and exit unrestrictedly, we propose a simple toll pricing method. It is shown that the method is the unique method satisfying the classical axioms of Additivity and Dummy in the cost sharing literature, and the axioms of...
Persistent link: https://www.econbiz.de/10010871247