Marginal cost price rule for homogeneous cost functions

Ori Haimanko

doi:10.1007/s001820200104

Marginal cost price rule for homogeneous cost functions

Ori Haimanko

Department of Economics

Research output: Contribution to journal › Article › peer-review

2 Scopus citations

Abstract

Mirman and Tauman (1982) show that axioms of cost sharing, additivity, rescaling invariance, monotonicity, and consistency uniquely determine a price rule on the class of continuously differentiable cost problems as the Aumann-Shapley price mechanism. Here we prove that standard versions of these axioms determine uniquely the marginal cost price rule on the class of homogeneous and convex cost functions, which are, in addition, continuously differentiable. This result persists even if the cost functons are not required to be convex.

Original language	English
Pages (from-to)	19-28
Number of pages	10
Journal	International Journal of Game Theory
Volume	31
Issue number	1
DOIs	https://doi.org/10.1007/s001820200104
State	Published - 1 Sep 2002

Keywords

Axiomatic characterization
Continuously differentiable
Homogeneous and convex cost functions
Marginal cost price rule

ASJC Scopus subject areas

Statistics and Probability
Mathematics (miscellaneous)
Social Sciences (miscellaneous)
Economics and Econometrics
Statistics, Probability and Uncertainty

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10.1007/s001820200104

Cite this

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Marginal cost price rule for homogeneous cost functions

Abstract

Keywords

ASJC Scopus subject areas

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