Distributive and additive costsharing of an homogeneous good (Q1294039)

This paper deals with description of the family of costsharing methods that allocate costs in proportion to demands when returns are constant, and commute with the additivity and composition of cost functions. Two simple such methods are average cost pricing and incremental costsharing. All other methods in the family combine elements of the average cost and incremental ones. Serial costsharing stands out prominently in the family, whereas the Shapley-Shubik method, and all values from the associated stand alone cooperative game, are excluded.