Cost monotonicity, consistency and minimum cost spanning tree games
Dutta, Bhaskar and Kar, Anirban (2002) Cost monotonicity, consistency and minimum cost spanning tree games. Working Paper. Coventry: University of Warwick, Department of Economics. Warwick economic research papers (No.629).
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We propose a new cost allocation rule for minimum cost spanning tree games. The new rule is a core selection and also satisfies cost monotonicity. We also give characterization theorems for the new rule as well as the much-studied Bird allocation. We show that the principal difference between these two rules is in terms of their consistency properties.
|Item Type:||Working or Discussion Paper (Working Paper)|
|Subjects:||H Social Sciences > HF Commerce|
|Divisions:||Faculty of Social Sciences > Economics|
|Library of Congress Subject Headings (LCSH):||Cost allocation, Cost accounting, Monotonic functions, Spanning trees (Graph theory)|
|Series Name:||Warwick economic research papers|
|Publisher:||University of Warwick, Department of Economics|
|Place of Publication:||Coventry|
|Official Date:||January 2002|
|Number of Pages:||36|
|Status:||Not Peer Reviewed|
|Access rights to Published version:||Open Access|
Original version, July 2001; this revision, January 2002
1. C.G. Bird, On cost allocation for a spanning tree : A game theoretic approach, Networks 6 (1976), 335-350.
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