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Cost allocation protocols for supply contract design in network situations

Author

Listed:
  • Stefano Moretti
  • Stef Tijs
  • Rodica Branzei
  • Henk Norde

Abstract

The class of Construct and Charge (CC-) rules for minimum cost spanning tree (mcst) situations is considered. CC-rules are defined starting from the notion of charge systems, which specify particular allocation protocols rooted on the Kruskal algorithm for computing an mcst. These protocols can be easily implemented in practical network situations (for instance, in supply transportation networks), are flexible to changes in the network situation and meet the requirement of continuous monitoring by the agents involved. Special charge systems, that we call conservative, lead to a subclass of CC-rules that coincides with the class of obligation rules for mcst situations. Copyright Springer-Verlag 2009

Suggested Citation

  • Stefano Moretti & Stef Tijs & Rodica Branzei & Henk Norde, 2009. "Cost allocation protocols for supply contract design in network situations," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 69(1), pages 181-202, March.
    • Handle: RePEc:spr:mathme:v:69:y:2009:i:1:p:181-202
    DOI: 10.1007/s00186-008-0226-9
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    References listed on IDEAS

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    1. Norde, Henk & Moretti, Stefano & Tijs, Stef, 2004. "Minimum cost spanning tree games and population monotonic allocation schemes," European Journal of Operational Research, Elsevier, vol. 154(1), pages 84-97, April.
    2. Feltkamp, V. & Tijs, S.H. & Muto, S., 1994. "On the irreducible core and the equal remaining obligations rule of minimum cost spanning extension problems," Other publications TiSEM 56ea8c64-a05f-4b3f-ab61-9, Tilburg University, School of Economics and Management.
    3. Feltkamp, V. & Tijs, S.H. & Muto, S., 1994. "On the irreducible core and the equal remaining obligations rule of minimum cost spanning extension problems," Discussion Paper 1994-106, Tilburg University, Center for Economic Research.
    4. Feltkamp, V. & Tijs, S.H. & Muto, S., 1994. "Minimum cost spanning extension problems : The proportional rule and the decentralized rule," Other publications TiSEM 2c6cd46b-7e72-4262-a479-3, Tilburg University, School of Economics and Management.
    5. Brânzei, R. & Moretti, S. & Norde, H.W. & Tijs, S.H., 2003. "The P-Value for Cost Sharing in Minimum Cost Spanning Tree Situations," Discussion Paper 2003-129, Tilburg University, Center for Economic Research.
    6. Feltkamp, V. & Tijs, S.H. & Muto, S., 1994. "Minimum cost spanning extension problems : The proportional rule and the decentralized rule," Discussion Paper 1994-96, Tilburg University, Center for Economic Research.
    7. Stefano Moretti & Rodica Branzei & Henk Norde & Stef Tijs, 2004. "The P-value for cost sharing in minimum," Theory and Decision, Springer, vol. 56(1), pages 47-61, April.
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    Cited by:

    1. Behzad Hezarkhani & Wiesław Kubiak, 2013. "Transshipment games with identical newsvendors and cooperation costs," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 78(3), pages 315-339, December.
    2. Bergantiños, Gustavo & Lorenzo, Leticia & Lorenzo-Freire, Silvia, 2011. "A generalization of obligation rules for minimum cost spanning tree problems," European Journal of Operational Research, Elsevier, vol. 211(1), pages 122-129, May.

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