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Minimum cost spanning tree games and spillover stability

Author

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  • Ruud Hendrickx
  • Jacco Thijssen
  • Peter Borm

Abstract

This article discusses interactive minimum cost spanning tree problems and argues that the standard approach of using a transferable utility game to come up with a fair allocation of the total costs has some flaws. A new model of spillover games is presented, in which each player’s decision whether or not to cooperate is properly taken into account. Copyright The Author(s) 2012

Suggested Citation

  • Ruud Hendrickx & Jacco Thijssen & Peter Borm, 2012. "Minimum cost spanning tree games and spillover stability," Theory and Decision, Springer, vol. 73(3), pages 441-451, September.
    • Handle: RePEc:kap:theord:v:73:y:2012:i:3:p:441-451
    DOI: 10.1007/s11238-011-9262-7
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    4. Curiel, I. & Pederzoli, G. & Tijs, S.H., 1989. "Sequencing games," Other publications TiSEM cd695be5-0f54-4548-a952-2, Tilburg University, School of Economics and Management.
    5. Bloch, Francis, 1996. "Sequential Formation of Coalitions in Games with Externalities and Fixed Payoff Division," Games and Economic Behavior, Elsevier, vol. 14(1), pages 90-123, May.
    6. Ichiishi, Tatsuro, 1981. "Super-modularity: Applications to convex games and to the greedy algorithm for LP," Journal of Economic Theory, Elsevier, vol. 25(2), pages 283-286, October.
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    More about this item

    Keywords

    Minimum cost spanning tree problems; Transferable utility games; Spillovers; C71; C72;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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