An Axiomatic Approach to Cost Allocation for Public Investment.

Abstract

The authors developed a cost allocation scheme for collective investments which had such properties as total costs being covered and insensitivity to ordering of simulataneous demands. In this paper one will derive the same scheme from a set of axioms. These axioms may be viewed as a constitution which participants in a collective investment agree to as being a fair way of allocating costs. The cost allocation principle is to be agreed to prior to agreement on the amount of investment; the amount of investment is then determined by collective bargaining. (Author)

Document Details

Document Type
Technical Report
Publication Date
Feb 01, 1971
Accession Number
AD0721295

Entities

People

  • A. Whinston
  • E. Loehman

Tags

DTIC Thesaurus Topics

  • Agreements
  • Agricultural Economics
  • Bargaining
  • Cooperation
  • Economics
  • Investments
  • Money
  • Negotiations
  • Social Sciences

Fields of Study

  • Economics

Readers

  • Life Cycle Cost Analysis
  • Mathematical Modeling and Probability Theory.
  • Strategic Security Studies