@inproceedings{f8a3113040e94c2a80c47243ce6256b5,
title = "Allocation of Recurring Fixed Costs According to Partners{\textquoteright} Varying Revenues in Professional Services",
abstract = "We consider professional service providers, such as lawyers and physicians, who essentially work independently, but share an office or clinic. They need to jointly cover recurring fixed costs, like rent and staff wages, in every period. It is often argued that such costs should be allocated based on usage of the facilities. A more quantifiable indirect indicator of usage is the revenues. As partners{\textquoteright} revenues fluctuate over time, it is plausible to require, as we do in this study, that their shares in the fixed costs fluctuate accordingly. Had partners{\textquoteright} revenues not fluctuated, the deterministic cost allocation problem would be mathematically equivalent to the bankruptcy problem. Ours is a dynamic stochastic model of cost allocation for which we examine some ex-ante mechanisms based on partners{\textquoteright} portions of total revenue. Monotonicity, proportionality, and other properties of the suggested mechanisms are studied.",
keywords = "cost allocation, facility sharing, gamma distributions, professional services, revenue ratios",
author = "Eugene Khmelnitsky and Yigal Gerchak",
note = "Publisher Copyright: {\textcopyright} The Author(s), under exclusive license to Springer Nature Switzerland AG 2024.; 24th International Conference on Group Decision and Negotiation, GDN 2024 ; Conference date: 02-06-2024 Through 05-06-2024",
year = "2024",
doi = "https://doi.org/10.1007/978-3-031-59373-4_11",
language = "الإنجليزيّة",
isbn = "9783031593727",
series = "Lecture Notes in Business Information Processing",
publisher = "Springer Science and Business Media Deutschland GmbH",
pages = "130--141",
editor = "{Campos Ferreira}, Marta and Thomasz Wachowicz and Pascale Zarat{\'e} and Yu Maemura",
booktitle = "Human-Centric Decision and Negotiation Support for Societal Transitions - 24th International Conference on Group Decision and Negotiation, GDN 2024, Proceedings",
address = "ألمانيا",
}