The aim of this paper is to introduce and axiomatically characterize the P-value as a rule to solve the cost sharing problem in minimum cost spanning tree (mcst) situations. The P-value is related to the Kruskal algorithm for finding an mcst. Moreover, the P-value leads to a core allocation of the corresponding mcst game, and when applied also to the mcst subsituations it delivers a population monotonic allocation scheme. A conewise positive linearity property is one of the basic ingredients of an axiomatic characterization of the P-value.
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Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number
129.
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