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Pricing competitively — a response to Jay Lightfoot
Authors:Perry C Beider
Abstract:A recent paper in this journal criticized the two methods commonly used to allocate the costs of multi-payload launches, and proposed two new alternatives. The paper argued that ‘Shapley-value’ pricing and the ‘Independent Cost Proportional Scheme’ are immune to instability problems possible under the traditional mass-proportional approach, and reduce ‘subsidies’ paid to small payloads. This rejoinder shows that neither claim is true in general. It also questions whether new pricing formulas are truly needed — or even sustainable in today's competitive market.
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