Probabilistic value pricing

Probabilistic value pricing

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Article ID: iaor19961746
Country: Germany
Volume: 43
Issue: 1
Start Page Number: 73
End Page Number: 95
Publication Date: Jan 1996
Journal: Mathematical Methods of Operations Research (Heidelberg)
Authors: ,
Abstract:

In this paper the authors consider the class of probabilistic value pricing mechanisms for cost allocation problems, which are related to probabilistic values for finite games with transferable utility. They characterize probabilistic value pricing axiomatically, as well as several related pricing mechanisms, including semivalue pricing (symmetric pricing without cost sharing), quasivalue pricing (cost sharing pricing without symmetry), and weighted Shapley value pricing. The authors also describe a class of problems in which (symmetric) Shapley value pricing coincides with Aumann-Shapley pricing, and a class of problems for which every quasivalue pricing mechanism is supportable.

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