No advantageous merging in minimum cost spanning tree problems

In the context of cost sharing in minimum cost spanning tree problems, we introduce a property called No Advantageous Merging. This property implies that no group of agents can be better off claiming to be a single node. We show that the sharing rule that assigns to each agent his own connection cost (the Bird rule) satisfies this property. Moreover, we provide a characterization of the Bird rule using No Advantageous Merging.

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Year of publication:	2006-10-24
Authors:	Gomez-Rua, Maria ; Vidal-Puga, Juan
Institutions:	Volkswirtschaftliche Fakultät, Ludwig-Maximilians-Universität München
Subject:	Minimum cost spanning tree problems \| cost sharing \| Bird rule \| No Advantageous Merging

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Extent:	application/pdf
Series:	MPRA Paper.
Type of publication:	Book / Working Paper
Classification:	D61 - Allocative Efficiency; Cost-Benefit Analysis ; C71 - Cooperative Games ; D7 - Analysis of Collective Decision-Making
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005619831