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This book contains a systematic analysis of allocation rules
related to cost and surplus sharing problems. Broadly speaking, it
examines various types of rules for allocating a common monetary
value (cost) between individual members of a group (or network)
when the characteristics of the problem are somehow objectively
given. Without being an advanced text it o?ers a comprehensive
mathematical analysis of a series of well-known allocation rules.
The aim is to provide an overview and synthesis of current kno-
edge concerning cost and surplus sharing methods. The text is
accompanied by a description of several practical cases and
numerous examples designed to make the theoretical results easily
comprehensible for both students and practitioners alike. The book
is based on a series of lectures given at the University of
Copenhagen and Copenhagen Business School for graduate students
joining the math/econ program. I am indebted to numerous
colleagues, conference participants and s- dents who during the
years have shaped my approach and interests through collaboration,
commentsandquestionsthatweregreatlyinspiring.Inparti- lar, I would
like to thank Hans Keiding, Maurice Koster, Tobias Markeprand, Juan
D. Moreno-Ternero, Herv e Moulin, Bezalel Peleg, Lars Thorlund-
Petersen, Jorgen Tind, Mich Tvede and Lars Peter Osterdal."
This book contains a systematic analysis of allocation rules
related to cost and surplus sharing problems. Broadly speaking, it
examines various types of rules for allocating a common monetary
value (cost) between individual members of a group (or network)
when the characteristics of the problem are somehow objectively
given. Without being an advanced text it o?ers a comprehensive
mathematical analysis of a series of well-known allocation rules.
The aim is to provide an overview and synthesis of current kno-
edge concerning cost and surplus sharing methods. The text is
accompanied by a description of several practical cases and
numerous examples designed to make the theoretical results easily
comprehensible for both students and practitioners alike. The book
is based on a series of lectures given at the University of
Copenhagen and Copenhagen Business School for graduate students
joining the math/econ program. I am indebted to numerous
colleagues, conference participants and s- dents who during the
years have shaped my approach and interests through
collaboration,commentsandquestionsthatweregreatlyinspiring.Inparti-
lar, I would like to thank Hans Keiding, Maurice Koster, Tobias
Markeprand, Juan D. Moreno-Ternero, Herv' e Moulin, Bezalel Peleg,
Lars Thorlund- Petersen, Jorgen Tind, Mich Tvede and Lars Peter
Osterdal.
A comprehensive overview of networks and economic design,
presenting models and results drawn from economics, operations
research, and computer science; with examples and exercises. This
book explores networks and economic design, focusing on the role
played by allocation rules (revenue and cost-sharing schemes) in
creating and sustaining efficient network solutions. It takes a
normative approach, seeking economically efficient network
solutions sustained by distributional fairness, and considers how
different ways of allocating liability affect incentives for
network usage and development. The text presents an up-to-date
overview of models and results currently scattered over several
strands of literature, drawing on economics, operations research,
and computer science. The book's analysis of allocation problems
includes such classic models from combinatorial optimization as the
minimum cost spanning tree and the traveling salesman problem. It
examines the planner's ability to design mechanisms that will
implement efficient network structures, both in large decentralized
networks and when there is user-agent information asymmetry.
Offering systematic theoretical analyses of various compelling
allocation rules in cases of fixed network structures as well as
discussions of network design problems, the book covers such topics
as tree-structured distribution systems, routing games,
organizational hierarchies, the "price of anarchy," mechanism
design, and efficient implementation. Appropriate as a reference
for practitioners in network regulation and the network industry or
as a text for graduate students, the book offers numerous
illustrative examples and end-of-chapter exercises that highlight
the concepts and methods presented.
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