Ed and Steve are students at Berkeley College. They share an apartment that is owned by Steve.

Steve is considering subscribing to an Internet provider that has the following packages available:

Package		Per Month
A.	Internet access		$60
B.	Phone services		15
C.	Internet access + phone services		70

Ed spends most of his time on the Internet ("everything can be found online now"). Steve prefers to spend his time talking on the phone rather than using the Internet ("going online is a waste of time"). They agree that the purchase of the $70 total package is a "winwin" situation.

Requirements

1.	Allocate the $70 between Ed and Steve using (a) the stand-alone cost-allocation method, (b) the incremental cost-allocation method, and (c) the Shapley value method.
2.	Which method would you recommend they use and why?