Decreasing Serial Cost Sharing under Economies of Scale

Decreasing serial cost sharing: an axiomatic characterization

The increasing serial cost sharing rule of Moulin and Shenker (Econometrica 60:1009–1037, 1992) and the decreasing serial rule of de Frutos (J Econ Theory 79:245–275, 1998) are known by their intuitive appeal and striking incentive properties. An axiomatic characterization of the increasing serial rule was provided by Moulin and Shenker (J Econ Theory 64:178–201, 1994). This paper gives an axio...

Mixed serial cost sharing

A new serial cost sharing rule, called mixed serial cost sharing, is defined on the class of cost functions which equal a sum of an increasing convex and increasing concave function. This rule is based on a particular decomposition principle known as complementary-slackness decomposition and it coincides with the original serial rule of Moulin and Shenker (1992) [Moulin, H., Shenker, S., 1992. ...

Intermediate serial cost-sharing rules

In this paper we give a generalization of the serial costsharing rule de…ned by Moulin and Shenker (1992) for cost sharing problems. According to the serial cost sharing rule, agents with low demands of a good pay cost increments associated with low quantities in the production process of that good. This fact might not always be desirable for those agents, since those cost increments might be h...

Strategic Properties of Heterogeneous Serial Cost Sharing

Strategic properties of heterogeneous serial cost sharing

We show that serial cost sharing for heterogeneous goods [4], and a large number of other cost sharing mechanisms, have the same strong strategic properties as serial cost sharing for homogenous goods [10], including uniqueness of the Nash equilibrium for all utility profiles and cost functions, dominance solvability, solvability in overwhelmed actions, and robustness to coalitional deviations....