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Heterogeneous cost sharing, the directional serial rule

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Abstract

The directional serial rule is introduced as a natural serial extension, generalizing the Moulin–Shenker cost sharing rule to heterogeneous cost sharing models. It is the unique regular rule compatible with the radial serial principle. In particular, this shows the incompatibility of the serial principle with differentiability of a cost sharing rule as a function of the individual demands.

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Authors and Affiliations

  1. Department of Quantitative Economics, Faculty of Economics and Econometrics, University of Amsterdam, Amsterdam, The Netherlands

    Maurice Koster

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  1. Maurice Koster
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Correspondence to Maurice Koster.

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I would like to thank the editor and the referee for their comments which have been most useful.

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Koster, M. Heterogeneous cost sharing, the directional serial rule. Math Meth Oper Res 64, 429–444 (2006). https://doi.org/10.1007/s00186-006-0093-1

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  • DOI: https://doi.org/10.1007/s00186-006-0093-1

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