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Sharing the Cost of a Path

Author

Listed:
  • Andreas Darmann
  • Christian Klamler
  • Ulrich Pferschy

Abstract

In recent years, many authors have analyzed fair division aspects in problems containing network structures. Frequently, the connection of all vertices of the network, that is, a minimum cost spanning tree, and the sharing of its cost was considered. In this article, we study the fair division of costs of connecting two designated vertices by a path. Specifically, we will introduce two cost-sharing rules that provide a division of the costs of forming a shortest path. One of the cost-sharing rules will include aspects from non-cooperative extensive form games in the sense that selfish and individually rational behaviour without agreement between the agents in a sequential structure is taken into account for the determination of the cooperative solution. The other cost-sharing rule is based on an alternating structure along the shortest path. Axiomatic characterizations of the two cost-sharing rules are provided.

Suggested Citation

  • Andreas Darmann & Christian Klamler & Ulrich Pferschy, 2015. "Sharing the Cost of a Path," Studies in Microeconomics, , vol. 3(1), pages 1-12, June.
    • Handle: RePEc:sae:miceco:v:3:y:2015:i:1:p:1-12
    DOI: 10.1177/2321022215577551
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    References listed on IDEAS

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