Accession Number : AD0721295

Title :   An Axiomatic Approach to Cost Allocation for Public Investment.

Descriptive Note : Technical rept.,

Corporate Author : KRANNERT GRADUATE SCHOOL OF INDUSTRIAL ADMINISTRATION LAFAYETTE IND

Personal Author(s) : Loehman,E. ; Whinston,A.

Report Date : 01 FEB 1971

Pagination or Media Count : 18

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)

Descriptors :   (*ECONOMICS, COST EFFECTIVENESS), (*OPERATIONS RESEARCH, MATHEMATICAL MODELS), PARTIAL DIFFERENTIAL EQUATIONS, SET THEORY, PROBABILITY, THEOREMS

Subject Categories : Economics and Cost Analysis
      Operations Research

Distribution Statement : APPROVED FOR PUBLIC RELEASE