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Conflicting Claims Problem Associated with Cost Sharing of a Network

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  • Giménez-Gómez, José-Manuel

    (Universitat Rovira i Virgili, Departament d'Economia and CREIP)

  • Subiza, Begoña

    (Universidad de Alicante, Departamento de Métodos Cuantitativos y Teoría Económica)

  • Peris, Josep

    (Universidad de Alicante, Departamento de Métodos Cuantitativos y Teoría Económica)

Abstract

A minimum cost spanning tree (mcst) problem analyzes the way to effciently connect individuals to a source when they are located at different places. Once the effcient tree is obtained, the question on how allocating the total cost among the involved agents defines, in a natural way, a conflicting claims situation. For instance, we may consider the endowment as the total cost of the network, whereas for each individual her claim is the maximum amount she will be allocated, that is, her connection cost to the source. Obviously, we have a conflicting claims problem, so we can apply claims rules in order to obtain an allocation of the total cost. Nevertheless, the allocation obtained by using claims rules might not satisfy some appealing properties in particular, it does not belong to the core of the associated cooperative game). We will define other natural claims problems that appear if we analyze the maximum and minimum amount that an individual should pay in order to support the minimum cost tree.

Suggested Citation

  • Giménez-Gómez, José-Manuel & Subiza, Begoña & Peris, Josep, 2014. "Conflicting Claims Problem Associated with Cost Sharing of a Network," QM&ET Working Papers 14-3, University of Alicante, D. Quantitative Methods and Economic Theory.
    • Handle: RePEc:ris:qmetal:2014_003
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    References listed on IDEAS

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    1. 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.
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    7. Hernández, Penélope & Peris, Josep E. & Silva-Reus, José A., 2016. "Strategic sharing of a costly network," Journal of Mathematical Economics, Elsevier, vol. 66(C), pages 72-82.
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    Cited by:

    1. José-Manuel Giménez-Gómez & Josep E Peris & Begoña Subiza, 2020. "An egalitarian approach for sharing the cost of a spanning tree," PLOS ONE, Public Library of Science, vol. 15(7), pages 1-14, July.
    2. Giménez-Gómez, José M. & Peris, Josep E. & Subiza, Begoña, 2016. "A `Solidarity' Approach to the Problem of Sharing a Network Cost," QM&ET Working Papers 16-5, University of Alicante, D. Quantitative Methods and Economic Theory.

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    More about this item

    Keywords

    Minimum cost spanning tree problem; Claims problem; Core;
    All these keywords.

    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
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations

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