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This paper proposes a setting that allows for technological cooperation in the cost sharing model. Dealing with discrete demands, we study two properties: Additivity and Dummy. We show that these properties are insuffcient to guarantee a unit-flow representation similar to that of Wang (1999)....
Persistent link: https://www.econbiz.de/10009644136
Suppose that a group have demands for some good. Each one of them owns a technology to produce the good, with these technologies varying in their effectiveness. We consider technologies exhibiting either increasing return to scale (IRS) or decreasing returns to scale (DRS). In each case, we...
Persistent link: https://www.econbiz.de/10010900641
In the cost sharing model with technological cooperation, we investigate the implications of a number of consistency requirements. In a context where the enforcing authority cannot prevent agents from splitting or merging their demands (in order to reduce their cost shares), the methods used...
Persistent link: https://www.econbiz.de/10010901392