Abstract
Previous literature has shown that the serial cost sharing rule is endowed with a variety of desirable incentive and equity features. By definition, applications of this mechanism are essentially constrained to single service facilities. We investigate difficulties that emerge when attempting to extend serial cost sharing to multi-product environments. In particular, we show that such an extension is incompatible with the additivity axiom.Journal of Economic LiteratureClassification Numbers: D63, C71.
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