We offer an axiomatization of the serial cost-sharing method of Friedman and Moulin (1999). The key property in our axiom system is Group Demand Monotonicity, asking that when a group of agents raise their demands, not all of them should pay less. Serial cost sharing was proposed by Moulin and Shenker (1992) as a method for allocating the cost of production of a single good among n agents.Friedman and Moulin (1999) generalized it to the context where each agent consumes a possibly different good: total cost varies with the consumption profile, but need no longer be a function of the sum of the agents' consumptions. The problem is to allocate the cost C(x) generated by the demand profile x = (x_1,..., x_n) on the basis of the knowledge of x and the information contained in the cost function C denned on , which is assumed to be non-decreasing, to be continuously differentiable, and to display no fixed costs.
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