A discrete cost sharing model with technological cooperation

This article proposes a setting that allows for technological cooperation in the cost sharing model. Dealing with discrete demands, we study two properties: additivity and dummy. We show that these properties are insufficient to guarantee a unit‐flow representation similar to that of Wang (1999). To obtain a characterization of unit flows, we strengthen the dummy axiom and introduce a property that requires the cost share of every agent to be non‐decreasing in the incremental costs generated by their demand. Finally, a fairness requirement as to the compensation of technological cooperation is examined.