an:01925592
Zbl 1046.91043
Wang, YunTong
Proportionally adjusted marginal pricing method to share joint costs
EN
Rev. Econ. Des. 7, No. 2, 205-211 (2002).
00088681
2002
j
91B24 91B32
nonadditive cost sharing methods
Summary: 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.