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Consider the following 3-firms (A, B, C) cooperative cost allocation game: c(A) = c(B) = c(C) = 6 m., c(A, B) = c(A, C) =
Consider the following 3-firms (A, B, C) cooperative cost allocation game:
c(A) = c(B) = c(C) = 6 m., c(A, B) = c(A, C) = c(B, C) = 9 m. , c(A, B, C) = 14 m.
Show if the cost function is: (i) sub-additive and (ii) concave. Find also the Shapley solution and explain if it is blocked or not.
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