Sharing cost of network among users with differentiated willingness to pay

Elena Panova (1)

1 TSE-R - Toulouse School of Economics

We consider the problem of sharing the cost of a fixed tree-network among users with differentiated willingness to pay for the good supplied through the network. We find that the associated value-sharing problem is convex, hence, the core is large and we axiomatize a new, computationally simple core selection based on the idea of proportionality.

Mots clés: Sharing network cost; Core; Proportional allocation

Domaines: Economies et finances

Elena Panova. Sharing cost of network among users with differentiated willingness to pay. Games and Economic Behavior, 2023, 142, pp.666-689. ⟨10.1016/j.geb.2023.09.009⟩. ⟨hal-04556231⟩