Cost sharing solutions defined by non-negative eigenvectors

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Title: Cost sharing solutions defined by non-negative eigenvectors
Authors: Subiza, Begoña | Silva Reus, José Ángel | Peris, Josep E.
Research Group/s: Desarrollo, Métodos Cuantitativos y Teoría Económica (DMCTE)
Center, Department or Service: Universidad de Alicante. Departamento de Fundamentos del Análisis Económico | Universidad de Alicante. Instituto Interuniversitario de Desarrollo Social y Paz
Keywords: Cost sharing | Egalitarian | Proportional | Perron’s eigenvector | Compromise solution
Knowledge Area: Fundamentos del Análisis Económico
Issue Date: 16-Jul-2015
Publisher: Elsevier
Citation: European Journal of Operational Research. 2015, 244(2): 592-600. doi:10.1016/j.ejor.2015.01.055
Abstract: The problem of sharing a cost M among n individuals, identified by some characteristic ci∈R+,ci∈R+, appears in many real situations. Two important proposals on how to share the cost are the egalitarian and the proportional solutions. In different situations a combination of both distributions provides an interesting approach to the cost sharing problem. In this paper we obtain a family of (compromise) solutions associated to the Perron’s eigenvectors of Levinger’s transformations of a characteristics matrix A. This family includes both the egalitarian and proportional solutions, as well as a set of suitable intermediate proposals, which we analyze in some specific contexts, as claims problems and inventory cost games.
Sponsor: Financial support from Spanish Ministry of Economy and Competitiveness under Project ECO2013-43119 is gratefully acknowledged. Silva-Reus also acknowledges financial support from the Generalitat Valenciana, Spain under Project PROMETEO/2009/068.
ISSN: 0377-2217 (Print) | 1872-6860 (Online)
DOI: 10.1016/j.ejor.2015.01.055
Language: eng
Type: info:eu-repo/semantics/article
Rights: © 2015 Elsevier B.V.
Peer Review: si
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Appears in Collections:INV - DMCTE - Artículos de Revistas

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