ON THE THEORY OF COST-SHARING

This paper investigates efficiency and equitability issues given a cost sharing method φ{symbol} in an economy with a public commodity. We study the concept of a φ{symbol}-cost share equilibrium and examine the set of all equilibrium allocations. Finally, we devise a mechanism to implement φ{symbol}-cost share equilibria as strong equilibria of an associated non-cooperative game. © 1990 Springer-Verlag.