Realizing fair outcomes in minimum cost spanning tree problems through non-cooperative mechanisms

Gustavo Bergantiños and Juan Vidal-Puga

European Journal of Operational Research, 2010, vol. 201, issue 3, 811-820

Abstract: In the context of minimum cost spanning tree problems, we present a bargaining mechanism for connecting all agents to the source and dividing the cost among them. The basic idea is very simple: we ask each agent the part of the cost he is willing to pay for an arc to be constructed. We prove that there exists a unique payoff allocation associated with the subgame perfect Nash equilibria of this bargaining mechanism. Moreover, this payoff allocation coincides with the rule defined in Bergantiños and Vidal-Puga [Bergantiños, G., Vidal-Puga, J.J., 2007a. A fair rule in minimum cost spanning tree problems. Journal of Economic Theory 137, 326-352].

Keywords: Minimum; cost; spanning; tree; problems; Implementation (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (26)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:201:y:2010:i:3:p:811-820

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