The Value of the Non-Atomic Game Arising from a Rate-Setting Application and Related Problems.
CORNELL UNIV ITHACA N Y SCHOOL OF OPERATIONS RESEARCH AND INDUSTRIAL ENGINEERING
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The work is motivated by the following problem bulk-service telephone lines were installed at Cornell Universtiy, to be used for long-distance calls. The charges paid to the telephone company are mostly fixed monthly charges and are not usage-related. The problem is how to allocate these costs back to the users in a per call fashion, and how to do it in a way that is fair and efficient. The problem was solved by using the value of the associated non-atomic game. To be able to do this, the theory of non-atomic games had to be extended by weakening certain differentiability requirements. This is done here in addition a number of results about full-range game are obtained. Next the problem of non-atomic linear production games is studied. A number of results about the cores of such games are obtained, extending and strengthening similar results about finite linear production games. In addition, some results about the value of such games are established, and relationships between the core and the value are derived for a special case. Author
- Economics and Cost Analysis
- Numerical Mathematics