Minimum cost spanning extension problems : The proportional rule and the decentralized rule
Minimum cost spanning extension problems are generalizations of minimum cost spanning tree problems (see Bird 1976) where an existing network has to be extended to connect users to a source. In this paper, we present two cost allocation rules for these problems, viz. the proportional rule and the decentralized rule. We introduce algorithms that generate these rules and prove that both rules are refinements of the irreducible core, as defined in Feltkamp, Tijs and Muto (1994b). We then proceed to axiomatically characterize the proportional rule.
References listed on IDEAS
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- Feltkamp, V. & Tijs, S.H. & Muto, S., 1994.
"Bird's tree allocations revisited,"
1994-35, Tilburg University, Center for Economic Research.
- Feltkamp, V. & Tijs, S. & Muto, S., 2000. "Bird's tree allocations revisited," Other publications TiSEM 0558187e-1d04-4735-8339-8, Tilburg University, School of Economics and Management.
- Kuipers, Jeroen, 1993. "On the Core of Information Graph Games," International Journal of Game Theory, Springer;Game Theory Society, vol. 21(4), pages 339-350. Full references (including those not matched with items on IDEAS)