A group of agents participate in a cooperative enterprise producing a single good. Each participant contributes a particular type of input; output is nondecreasing in these contributions. How should it be shared? We analyze the implications of the axiom of Group Monotonicity: if a group of...

We offer an axiomatization of the serial cost-sharing method of Friedman and Moulin (1999). The key property in our axiom system is Group Demand Monotonicity, asking that when a group of agents raise their demands, not all of them should pay less.

We present a new model for cost sharing in minimum cost spanning tree problems, so that the planner can identify the agents that merge. Under this new framework, and as opposed to the traditional model, there exist rules that satisfy merge-proofness. Besides, by strengthening this property and...

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...

Consider a problem in which the cost of building an irrigation canal has to be divided among a set of people. Each person has different needs. When the needs of two or more people overlap, there is congestion. In problems without congestion, a unique canal serves all the people and it is enough...

Using James Buchanan's "Samaritan's Dilemma" as a basic example, this paper analyses the problems that have to be solved if strategic behavior is necessary to escape from dilemma situations by changing the opponents' incentives. These problems are addressed within one-shot games as well as...

In a river claims problem, agents are ordered linearly, and they have both an initial water endowment as well as a claim to the total water resource. We provide characterizations of two solutions to this problem, using Composition properties which have particularly relevant interpretations for...

We experimentally investigate multiple notions of equity in ultimatum bargaining with asymmetric outside options. Building on the generalized equity principle formulated by Selten (1978), we derive three different equity rules that can explain 43% of all offers. Our within-subject design further...

A group of agents are waiting for their job to be processed in a facility. We assume that each agent needs the same amount of processing time and incurs waiting costs. The facility has two parallel servers, being able to serve two agents at a time. We are interested in finding the order to serve...