Abstract
We study cost sharing methods with variable demands of heterogeneous goods, additive in the cost function and meeting the dummy axiom. We consider four axioms: scale invariance (SI); demand monotonicity (DM); upper bound for homogeneous goods (UBH) placing a natural cap on cost shares when goods are homogeneous; average cost pricing for homogeneous goods (ACPH). The random order values based on stand alone costs are characterized by SI and DM. Serial costsharing, by DM and UB; the Aumann–Shapley pricing method, by SI and ACPH. No other combination of the four axioms is compatible with additivity and dummy. Journal of Economic Literature Classification Numbers: C71, D62, D63
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