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Minimum cost spanning tree problems with indifferent agents

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  • Christian Trudeau

    (Department of Economics, University of Windsor)

Abstract

We consider an extension of minimum cost spanning tree (mcst) problems where some agents do not need to be connected to the source, but might reduce the cost of others to do so. Even if the cost usually cannot be computed in polynomial time, we extend the characterization of the Kar solution (Kar (2002, GEB)) for classic mcst problems. It is obtained by adapting the Equal treatment property: if the cost of the edge between two agents changes, their cost shares are a¤ected in the same manner if they have the same demand. If not, their changes are proportional to each other. We obtain three variations on the Kar solution, that are di¤erentiated and characterized using stability, fairness and manipulation-proofness properties.

Suggested Citation

  • Christian Trudeau, 2013. "Minimum cost spanning tree problems with indifferent agents," Working Papers 1306, University of Windsor, Department of Economics.
  • Handle: RePEc:wis:wpaper:1306
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    References listed on IDEAS

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    1. Moulin, Herve & Sprumont, Yves, 2006. "Responsibility and cross-subsidization in cost sharing," Games and Economic Behavior, Elsevier, vol. 55(1), pages 152-188, 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. Moulin, Herve & Shenker, Scott, 1992. "Serial Cost Sharing," Econometrica, Econometric Society, vol. 60(5), pages 1009-1037, September.
    6. 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.
    7. Moulin, Herve, 1995. "On Additive Methods to Share Joint Costs," Mathematical Social Sciences, Elsevier, vol. 30(1), pages 98-99, August.
    8. Friedman, Eric & Moulin, Herve, 1999. "Three Methods to Share Joint Costs or Surplus," Journal of Economic Theory, Elsevier, vol. 87(2), pages 275-312, August.
    9. Eric Bahel & Christian Trudeau, 2013. "A discrete cost sharing model with technological cooperation," International Journal of Game Theory, Springer;Game Theory Society, vol. 42(2), pages 439-460, May.
    10. Rosenthal, Edward C., 2013. "Shortest path games," European Journal of Operational Research, Elsevier, vol. 224(1), pages 132-140.
    11. Trudeau, Christian, 2009. "Network flow problems and permutationally concave games," Mathematical Social Sciences, Elsevier, vol. 58(1), pages 121-131, July.
    12. María Gómez-Rúa & Juan Vidal-Puga, 2011. "Merge-proofness in minimum cost spanning tree problems," International Journal of Game Theory, Springer;Game Theory Society, vol. 40(2), pages 309-329, May.
    13. Trudeau, Christian, 2012. "A new stable and more responsive cost sharing solution for minimum cost spanning tree problems," Games and Economic Behavior, Elsevier, vol. 75(1), pages 402-412.
    14. 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.
    15. Trudeau, Christian, 2009. "Cost sharing with multiple technologies," Games and Economic Behavior, Elsevier, vol. 67(2), pages 695-707, November.
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    Cited by:

    1. G. Bergantiños & J. Vidal-Puga, 2020. "One-way and two-way cost allocation in hub network problems," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 42(1), pages 199-234, March.
    2. Xiaojin Sun & Kwok Ping Tsang, 2013. "Housing Markets, Regulations and Monetary Policy," Working Papers e07-45, Virginia Polytechnic Institute and State University, Department of Economics.
    3. Bergantiños, Gustavo & Vidal-Puga, Juan, 2020. "Cooperative games for minimum cost spanning tree problems," MPRA Paper 104911, University Library of Munich, Germany.

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    More about this item

    Keywords

    Minimum cost spanning tree; Steiner tree; cost sharing; Shapley value.;
    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

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