Econometrica: Jul 1982, Volume 50, Issue 4

The Determination of Marginal Cost Prices under a Set of Axioms

https://doi.org/0012-9682(198207)50:4<895:TDOMCP>2.0.CO;2-3
p. 895-910

Dov Samet, Yair Tauman

This paper presents a set of axioms which characterize a family of price mechanisms for consumption goods, including marginal cost prices and Aumann-Shapley prices. By strengthening one of the axioms, marginal cost prices are characterized and by requiring that cost is shared the Aumann-Shapley prices are characterized. A discussion of the economic interpretation of the axioms is also provided.

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