Abstract

Although the subject of cost allocation has been extensively discussed in the literature of political economics, it has been generally neglected in mathematical literature. However, cost allocation affords a practical extension of fair-division techniques–one that is readily accessible to secondary school students and that gives them a simple yet powerful application of mathematics to real-world problem solving. A study of the concepts and the mathematics involved in cost allocation is most appropriate in a discrete mathematics course or a modeling course, but a case can be made for including this topic in other courses, as well. This article presents a typical cost-allocation problem with possible solutions and includes suggestions for presenting similar problems in the classroom. The basics of the problem follow closely from Young (1994).

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