An Introduction to Allocation Rules

This book provides an overview of existing methods for allocating costs and benefits. It will help readers evaluate the pros and cons of various methods involved in terms of factors such as fairness, consistency, stability, monotonicity and manipulability.

This book focuses on analyzing cost and surplus sharing problems in a systematic fashion. It offers an in-depth analysis of various types of rules for allocating a common monetary value (cost) between members of a group or network – e.g. individuals, firms or products. The results can help readers evaluate the pros and cons of the various methods involved in terms of various factors such as fairness, consistency, stability, monotonicity and manipulability. As such, the book represents an up-to-date survey of cost and surplus sharing methods for researchers, students and practitioners alike. The text is accompanied by practical cases and numerous examples to make the theoretical results easily accessible.