On the serial cost sharing rule

M. J. Albizuri, J. C. Santos, J. M. Zarzuelo
2003 International Journal of Game Theory  
In this paper we study a solution for discrete cost allocation problems, namely, the serial cost sharing method. We show that this solution can be computed by applying the Shapley value to an appropriate TU game and we present a probabilistic formula. We also define for cost allocation problems a multilinear function in order to obtain the serial cost sharing method as Owen (1972) did for the Shapley value in the cooperative TU context. Moreover we show that the pseudo average cost method is
more » ... ivalent to an extended Shapley value. * Authors are indebted to two anonymous referees for especially careful and useful comments. This research has been partially supported by the University of the Basque Country (projects UPV 036.321-HA197/98, UPV 036.321-HA042/99) and DGES Ministerio de Educació n y Ciencia (project PB96-0247).
doi:10.1007/s001820300129 fatcat:rigkoufv3rfyrdrt5bezmyrxnu