Minimum cost spanning tree problems with indifferent agents
AbstractWe consider an extension of minimum cost spanning tree (mcst) problems where some agents do not need to be connected to the source, but might reduce the cost of others to do so. Even if the cost usually cannot be computed in polynomial time, we extend the characterization of the Kar solution (Kar (2002, GEB)) for classic mcst problems. It is obtained by adapting the Equal treatment property: if the cost of the edge between two agents changes, their cost shares are a¤ected in the same manner if they have the same demand. If not, their changes are proportional to each other. We obtain three variations on the Kar solution, that are di¤erentiated and characterized using stability, fairness and manipulation-proofness properties.
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Bibliographic InfoPaper provided by University of Windsor, Department of Economics in its series Working Papers with number 1306.
Length: 17 pages
Date of creation: Aug 2013
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Minimum cost spanning tree; Steiner tree; cost sharing; Shapley value.;
Find related papers by JEL classification:
- C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
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