Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/108259 
Year of Publication: 
2012
Series/Report no.: 
IEHAS Discussion Papers No. MT-DP - 2012/7
Publisher: 
Hungarian Academy of Sciences, Institute of Economics, Centre for Economic and Regional Studies, Budapest
Abstract: 
In this paper cost sharing problems are considered. We focus on problems on a rooted tree, we call these problems cost-tree problems, and on the induced transferable utility cooperative games, we call these games irrigation games. A formal notion of irrigation games is introduced, and the characterization of the class of these games is provided. The well-known class of airport games (Littlechild and Thompson, 1977) is a subclass of irrigation games. The Shapley value (Shapley, 1953) is probably the most popular solution concept for transferable utility cooperative games. Dubey (1982) and Moulin and Shenker (1992) show respectively, that Shapley's (Shapley, 1953) and Young (1985)'s axiomatizations of the Shapley value are valid on the class of airport games. In this paper we extend Dubey (1982)'s and Moulin and Shenker (1992)'s results to the class of irrigation games, that is, we provide two characterizations of the Shapley value for cost sharing problems given on a rooted tree. In our characterization results we relate the TU games terminologies to the cost sharing terminologies, so we bridge between the two fields.
Subjects: 
Cost sharing
Shapley value
Rooted tree
Axiomatization of the Shapley value
JEL: 
C71
ISBN: 
978-615-5243-00-4
Document Type: 
Working Paper

Files in This Item:
File
Size
743.39 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.