Allocation inequality in cost sharing problem

• Main Authors: Chen, Zhi, Hu, Zhenyu, Tang, Qinshen
• Other Authors: Nanyang Business School
• Format: Article
• Language: English
• Published: 2020
• Subjects: Business::Operations management::Supply chain management; Cost Sharing Problem; Average Cost Pricing
• Online Access: https://hdl.handle.net/10356/143991
• Institution: Nanyang Technological University

This paper considers the problem of cost sharing, in which a coalition of agents, each endowed with an input, shares the output cost incurred from the total inputs of the coalition. Two allocations--average cost pricing and the Shapley value--are arguably the two most widely studied solution concept...