Decreasing Serial Cost Sharing under Economies to Scale

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Show simple item record Frutos, María Ángeles de 2009-06-15T12:22:28Z 2009-06-15T12:22:28Z 1998
dc.identifier.bibliographicCitation Journal of Economic Theory. 1998, vol. 79, nº 2, p. 245-275
dc.identifier.issn 0022-0531
dc.description.abstract We consider the problem of cost sharing in the presence of increasing returns to scale and potential strategic behavior on the part of consumers. We show that any smooth and strictly monotonic mechanism for which a Nash equilibrium exists for all profiles of convex and monotonic preferences must be dictatorial. However, we propose a cost sharing mechanism, the decreasing serial mechanism, for which an interesting domain restriction ensures existence of a noncooperative equilibrium for its cost sharing game. A characterization theorem of the mechanism based on the strategic properties of existence, uniqueness, and efficiency of its noncooperative equilibrium is provided.
dc.format.mimetype application/pdf
dc.language.iso eng
dc.publisher Elsevier
dc.rights ©Elsevier
dc.title Decreasing Serial Cost Sharing under Economies to Scale
dc.type article PeerReviewed
dc.description.status Publicado
dc.subject.eciencia Economía
dc.identifier.doi 10.1006/jeth.1998.2393
dc.rights.accessRights openAccess
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