A Museum Cost Sharing Problem

Yuntong Wang

Department of Economics, University of Windsor, Windsor, Ontario, Canada.

DOI: 10.4236/ajor.2011.12008                

Abstract

Ginsburgh and Zang [2] consider a revenue sharing problem for the museum pass program, in which several museums jointly offer museum passes that allow visitors an unlimited access to participating museums in a certain period of time. We consider a cost sharing problem that can be regarded as the dual problem of the above revenue sharing problem. We assume that all museums are public goods and have various (e.g., ser-vice) costs. These costs must be shared by museum visitors. We propose a cost sharing method and provide an axiomatic characterization of the method. We then define a game for the problem and show that the cost sharing method is the Shapley value of the game. We also provide a comparative statics analysis for both the Shapley value of the museum pass game and the Shapley value for the cost sharing game when the number of museums and/or the number of visitors change.

Keywords

Cost Sharing, Shapley Value

Conflicts of Interest

The authors declare no conflicts of interest.

References

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