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Cost Allocation and Airport Problems

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Type: Working Paper
Author: Thomson, William
Date: 2007
Agency: Rochester Center for Economic Research, University of Rochester, Rochester, New York, USA
Series: Working Paper, no. 538
URI: https://hdl.handle.net/10535/3635
Sector: Theory
Subject(s): agent-based computational economics
Abstract: "We consider the problem of dividing the cost of a facility when agents can be ordered in terms of the need they have for it, and accommodating an agent with a certain need allows accommodating all agents with lower needs at no extra cost. This problem is known as the 'airport problem,' the facility being the runway. We review the literature devoted to its study, and formulate a number of open questions."

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