Cost sharing: The nondifferentiable case

Research output: Contribution to journalArticlepeer-review

8 Scopus citations


We show existence and uniqueness of a cost allocation mechanism, satisfying standard axioms, on two classes of cost functions with major nondifferentiabilities. The first class consists of convex functions which exhibit nondecreasing marginal costs to scale, and the second of piecewise linear functions.

Original languageEnglish
Pages (from-to)445-462
Number of pages18
JournalJournal of Mathematical Economics
Issue number3
StatePublished - 1 Jun 2001
Externally publishedYes


  • Aumann-Shapley price mechanism
  • Axiomatic cost sharing
  • C71
  • D17
  • Mertens mechanism
  • Nondifferentiable cost functions

ASJC Scopus subject areas

  • Economics and Econometrics
  • Applied Mathematics


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