An application of the Aumann-Sharpley prices for joint cost allocation through book profit

An application of the Aumann-Sharpley prices for joint cost allocation through book profit

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Article ID: iaor199127
Country: South Korea
Volume: 2
Issue: 2
Start Page Number: 25
End Page Number: 32
Publication Date: Oct 1989
Journal: IE Interfaces
Authors:
Abstract:

The paper studies the joint cost allocation based on the book profit producing power of the output through the A-S price mechanism. It shows what part of the A-S book profit is allocated to the joint cost and what part is allocated to the variable total book profit of the short-run book profit function. Also the paper compares some other classical joint cost allocation methods with this A-S price method.

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