Marginal cost price rule for homogeneous cost functions

Research output: Contribution to journalArticlepeer-review

2 Scopus citations


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 languageEnglish
Pages (from-to)19-28
Number of pages10
JournalInternational Journal of Game Theory
Issue number1
StatePublished - 1 Sep 2002


  • 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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