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Cost Monotonicity, Consistency And Minimum Cost Spanning Tree Games

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Author Info

  • Dutta, Bhaskar

    (Indian Statistical Institute, New Delhi and Department of Economics, University of Warwick)

  • Kar, Anirban

    (Indian Statistical Institute, New Delhi)

Abstract

We propose a new cost allocation rule for minimum cost spanning tree games. The new rule is a core selection and also satis…es cost monotonicity. We also give characterization theorems for the new rule as well as the much-studied Bird allocation. We show that the principal di¤erence between these two rules is in terms of their consistency properties.

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File URL: http://www2.warwick.ac.uk/fac/soc/economics/research/workingpapers/2008/twerp629.pdf
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Bibliographic Info

Paper provided by University of Warwick, Department of Economics in its series The Warwick Economics Research Paper Series (TWERPS) with number 629.

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Length: 36 pages
Date of creation: 2002
Date of revision:
Handle: RePEc:wrk:warwec:629

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Keywords: spanning tree ; cost allocation ; core selection ; cost monotonicity ; consistency.;

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  1. Thomson, W., 1998. "Consistency and its Converse: an Introduction," RCER Working Papers 448, University of Rochester - Center for Economic Research (RCER).
  2. Daniel Granot & Michael Maschler, 1998. "Spanning network games," International Journal of Game Theory, Springer, vol. 27(4), pages 467-500.
  3. Young, H.P., 1994. "Cost allocation," Handbook of Game Theory with Economic Applications, in: R.J. Aumann & S. Hart (ed.), Handbook of Game Theory with Economic Applications, edition 1, volume 2, chapter 34, pages 1193-1235 Elsevier.
  4. Peleg, B, 1986. "On the Reduced Game Property and Its Converse," International Journal of Game Theory, Springer, vol. 15(3), pages 187-200.
  5. Kar, Anirban, 2002. "Axiomatization of the Shapley Value on Minimum Cost Spanning Tree Games," Games and Economic Behavior, Elsevier, vol. 38(2), pages 265-277, February.
  6. Hart, Sergiu & Mas-Colell, Andreu, 1989. "Potential, Value, and Consistency," Econometrica, Econometric Society, vol. 57(3), pages 589-614, May.
  7. Sharkey, W.W., 1991. "Network Models in Economics," Papers 69, Bell Communications - Economic Research Group.
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