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Ann, Bob and Dave share the cost of hooking up to a network. The (stand-alone) costs of hooking up the various subsets of agents are
C(A) = C(B) = 100; C(D) = 120
C(AB) = C(AD) = 140; C(BD) = 120
C(ABD) = 200
(a) Compute the cost shares recommended by the Shapley value and check that it is not in the stand-alone core.
(b) The core contains a unique allocation. Compute it.
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