Abstract
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 language | English |
|---|---|
| Pages (from-to) | 445-462 |
| Number of pages | 18 |
| Journal | Journal of Mathematical Economics |
| Volume | 35 |
| Issue number | 3 |
| DOIs | |
| State | Published - 1 Jun 2001 |
| Externally published | Yes |
Keywords
- Aumann-Shapley price mechanism
- Axiomatic cost sharing
- C71
- D17
- Mertens mechanism
- Nondifferentiable cost functions
ASJC Scopus subject areas
- Economics and Econometrics
- Applied Mathematics