Fair Division of Fixed Costs Defines the Shapley Value

@inproceedings{Dehez2007FairDO,
  title={Fair Division of Fixed Costs Defines the Shapley Value},
  author={Pierre Dehez},
  year={2007}
}
There is a large literature on cost sharing based on solutions defined for cooperative games with transferable utility (see Moulin [1] or Young [3]). The allocation of a fixed cost is however not explicitly addressed. Fairness suggests that a fixed cost should be uniformly allocated among players. That’s what does the sharing rule derived from the Shapley value [2]. We show that it is actually the only sharing rule which does so, offering as a byproduct an axiomatization which does not require… CONTINUE READING

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Young (ed.), Fair Allocation

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