Search results for "Joint cost"

showing 2 items of 2 documents

A contribution to the linear programming approach to joint cost allocation: Methodology and application

2009

Abstract The linear programming (LP) approach has been commonly proposed for joint cost allocation purposes. Within a LP framework, the allocation rules are based on a marginal analysis. Unfortunately, the additivity property which is required to completely allocate joint costs fails in presence of capacity, institutional or environmental constraints. In this paper, we first illustrate that the non allocated part can be interpreted as a type of producer’s surplus. Then, by using the information contained in the Simplex tableau we propose an original two-stage methodology based on the marginal costs and the production elasticity of input factors to achieve an additive cost allocation pattern…

Marginal costMathematical optimizationCost allocationInformation Systems and ManagementSimplexGeneral Computer ScienceLinear programmingIterative methodManagement Science and Operations Researchcomputer.software_genreIndustrial and Manufacturing EngineeringExpert systemJoint costSimplex algorithmModeling and SimulationcomputerMathematicsEuropean Journal of Operational Research
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Prices in Mixed Cost Allocation Problems

2001

Abstract We consider mixed cost allocation problems, i.e., joint cost problems that involve two types of heterogeneous outputs, divisible and indivisible. The Aumann–Shapley price mechanism is extended to this setting. We also present a set of properties which characterize this cost sharing rule. Journal of Economic Literature Classification numbers: D63, C79.

MicroeconomicsEconomics and EconometricsCost allocationJoint costCost estimateTotal costEconomic costEconomicsRelevant costCost sharingFinanceImplicit costGames and Economic Behavior
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