The P-Value for Cost Sharing in Minimum Cost Spanning Tree Situations

CentER Discussion Paper No. 2003-129

16 Pages Posted: 16 Jul 2004

See all articles by Rodica Branzei

Rodica Branzei

'A.l. Cuza' University of Iasi, Romania - Faculty of Computer Sciences

Stefano Moretti

University of Genoa - Department of Mathematics

Henk Norde

Tilburg University - Center For Economic Research; Tilburg University - Department of Econometrics & Operations Research

Stef H. Tijs

Tilburg University - Center For Economic Research; Tilburg University - Department of Econometrics & Operations Research; Università degli Studi di Genova - Dipartimento di Matematica

Date Written: 2003

Abstract

The aim of this paper is to introduce and axiomatically characterize the P-value as a rule to solve the cost sharing problem in minimum cost spanning tree (mcst) situations. The P-value is related to the Kruskal algorithm for finding an mcst. Moreover, the P-value leads to a core allocation of the corresponding mcst game, and when applied also to the mcst subsituations, it delivers a population monotonic allocation scheme. A conewise positive linearity property is one of the basic ingredients of an axiomatic characterization of the P-value.

Keywords: Cost sharing, minimum cost spanning tree games, value, population monotonic allocation schemes

Suggested Citation

Branzei, Rodica and Moretti, Stefano and Norde, Henk W. and Tijs, Stef H., The P-Value for Cost Sharing in Minimum Cost Spanning Tree Situations (2003). CentER Discussion Paper No. 2003-129, Available at SSRN: https://ssrn.com/abstract=556971 or http://dx.doi.org/10.2139/ssrn.556971

Rodica Branzei (Contact Author)

'A.l. Cuza' University of Iasi, Romania - Faculty of Computer Sciences ( email )

Carol I Blvd, Nr.11
Lasi
Romania

Stefano Moretti

University of Genoa - Department of Mathematics ( email )

Via Dodecaneso 35
16146 Genoa
Italy
+39 010 353 6838 (Phone)
+39 010 353 6752 (Fax)

HOME PAGE: http://www.dima.unige.it/~moretti/CV_moretti.pdf

Henk W. Norde

Tilburg University - Center For Economic Research ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands
+31 13 466 3245 (Phone)

Tilburg University - Department of Econometrics & Operations Research ( email )

Tilburg, 5000 LE
Netherlands

Stef H. Tijs

Tilburg University - Center For Economic Research ( email )

P.O. Box 90153
B925
5000 LE Tilburg
Netherlands
+31 13 466 2348 (Phone)

Tilburg University - Department of Econometrics & Operations Research ( email )

Tilburg, 5000 LE
Netherlands

Università degli Studi di Genova - Dipartimento di Matematica

Via Dodecaneso 35
16146 Genoa
Italy