General aggregation of demand and cost sharing methods

Authors
Citation
S. Tijs et M. Koster, General aggregation of demand and cost sharing methods, ANN OPER R, 84, 1998, pp. 137-164
Citations number
27
Categorie Soggetti
Engineering Mathematics
Journal title
ANNALS OF OPERATIONS RESEARCH
ISSN journal
02545330 → ACNP
Volume
84
Year of publication
1998
Pages
137 - 164
Database
ISI
SICI code
0254-5330(1998)84:<137:GAODAC>2.0.ZU;2-A
Abstract
This paper extends the notion of cost sharing to models with general demand aggregation rules. In the process, aggregated serial cost sharing mechanis ms are defined and characterized. A framework for a dynamic view on cost sh aring is provided, introducing the notion of consistency to the generalized cost sharing model. Corresponding optimistic and pessimistic cooperative c ost games are defined and their cores are studied. In particular, we show t hat the class of bankruptcy problems can be seen as a special class of cost sharing problems. It is seen that the serial mechanism in this specific ca se is closely related to the Constrained Equal Award rule.