Decentralized Pricing in Minimum Cost Spanning Trees
AbstractIn the minimum cost spanning tree model we consider decentralized pricing rules, i.e. rules that cover at least the efficient cost while the price charged to each user only depends upon his own connection costs. We define a canonical pricing rule and provide two axiomatic characterizations. First, the canonical pricing rule is the smallest among those that improve upon the Stand Alone bound, and are either superadditive or piece-wise linear in connection costs. Our second, direct characterization relies on two simple properties highlighting the special role of the source cost.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University of Copenhagen. Department of Economics in its series Discussion Papers with number 08-24.
Length: 13 pages
Date of creation: Oct 2008
Date of revision:
Contact details of provider:
Postal: Øster Farimagsgade 5, Building 26, DK-1353 Copenhagen K., Denmark
Phone: (+45) 35 32 30 10
Fax: +45 35 32 30 00
Web page: http://www.econ.ku.dk
More information through EDIRC
pricing rules; minimum cost spanning trees; canonical pricing rule; stand-alone cost; decentralization;
Other versions of this item:
- Jens Hougaard & Hervé Moulin & Lars Østerdal, 2010. "Decentralized pricing in minimum cost spanning trees," Economic Theory, Springer, vol. 44(2), pages 293-306, August.
- C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
- D60 - Microeconomics - - Welfare Economics - - - General
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bergantinos, Gustavo & Vidal-Puga, Juan J., 2007.
"A fair rule in minimum cost spanning tree problems,"
Journal of Economic Theory,
Elsevier, vol. 137(1), pages 326-352, November.
- Gustavo Bergantiños & Juan Vidal-Puga, 2005. "A fair rule in minimum cost spanning tree problems," Game Theory and Information 0504001, EconWPA.
- Moulin, H., 1986. "Characterizations of the pivotal mechanism," Journal of Public Economics, Elsevier, vol. 31(1), pages 53-78, October.
- Moulin, H., 1989.
"Uniform Externalities: Two Axioms For Fair Allocation,"
UFAE and IAE Working Papers
117-89, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- Moulin, Herve, 1990. "Uniform externalities : Two axioms for fair allocation," Journal of Public Economics, Elsevier, vol. 43(3), pages 305-326, December.
- Bhaskar Dutta & Anirban Kar, 2002.
"Cost monotonicity, consistency and minimum cost spanning tree games,"
Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers
02-04, Indian Statistical Institute, New Delhi, India.
- Dutta, Bhaskar & Kar, Anirban, 2004. "Cost monotonicity, consistency and minimum cost spanning tree games," Games and Economic Behavior, Elsevier, vol. 48(2), pages 223-248, August.
- Dutta, Bhaskar & Kar, Anirban, 2002. "Cost Monotonicity, Consistency And Minimum Cost Spanning Tree Games," The Warwick Economics Research Paper Series (TWERPS) 629, University of Warwick, Department of Economics.
- Brânzei, R. & Moretti, S. & Norde, H.W. & Tijs, S.H., 2003.
"The P-Value for Cost Sharing in Minimum Cost Spanning Tree Situations,"
2003-129, Tilburg University, Center for Economic Research.
- Brânzei, R. & Moretti, S. & Norde, H.W. & Tijs, S.H., 2004. "The P-value for cost sharing in minimum cost spanning tree situations," Open Access publications from Tilburg University urn:nbn:nl:ui:12-142598, Tilburg University.
- Brams,Steven J. & Taylor,Alan D., 1996. "Fair Division," Cambridge Books, Cambridge University Press, number 9780521556446, December.
- Hervé Moulin & Scott Shenker, 2001. "Strategyproof sharing of submodular costs:budget balance versus efficiency," Economic Theory, Springer, vol. 18(3), pages 511-533.
- Moulin, Herve, 1992. "Welfare bounds in the cooperative production problem," Games and Economic Behavior, Elsevier, vol. 4(3), pages 373-401, July.
- Bogomolnaia, Anna & Moulin, Herve, 2001. "A New Solution to the Random Assignment Problem," Journal of Economic Theory, Elsevier, vol. 100(2), pages 295-328, October.
- Hougaard, Jens Leth & Tvede, Mich, 2012. "Truth-telling and Nash equilibria in minimum cost spanning tree models," European Journal of Operational Research, Elsevier, vol. 222(3), pages 566-570.
- Jens Leth Hougaard & Mich Tvede, 2010. "Strategyproof Nash Equilibria in Minimum Cost Spanning Tree Models," MSAP Working Paper Series 01_2010, University of Copenhagen, Department of Food and Resource Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Hoffmann).
If references are entirely missing, you can add them using this form.