All sorry to disagree: a general principle for the provision of nonrival goods

Article Abstract:

A model of social costs that assumes the existence of equal rights to a public good, with differences in preferences being the sole responsibility of the agents, is presented and discussed. The concept of cost allocation according to the perceived benefits to the user in situations where there exists a nonrival good has been explored before. Such a concept, however, is negated with the introduction of a unanimity level as a conceptual upper boundary for the provision of individual welfare. The 'all sorry to disagree' theory stresses the benefits of equal shouldering of costs regardless of differences in benefits.

Models, Externalities (Economics), Public goods

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Traffic-based cost allocation in a network

Article Abstract:

The private-cost method allocates the fixed cost of a communication network to each subscriber the cost of his own dedicated terminal equipments. The external-cost method allocates the connecting cost of a user to all his correspondents according to the amount of traffic with him. The three axioms characterizing the convex combinations of these two methods include additivity in terms of connecting costs, sustainability and no transit.

Electronic computers, Cost Accounting, Communications Computer Systems, Finance, Telecommunications systems, Telecommunication systems, Allocation (Accounting)

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Managed care as a public cost-containment mechanism

Article Abstract:

A study was conducted on the effectivity of managed care in public cost-containment. Data from the Civilian Health and Medical Program of the Uniformed Services were analyzed. Results showed that the wide range of benefits provided by the health maintenance organization boosted demand for ambulatory services. The aggressive utilization review was found to have a minimal effect on inpatient stays.

Managed care plans (Medical care), Cost control

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