No advantageous merging in minimum cost spanning tree problems

María Gómez-Rúa and Juan Vidal-Puga

MPRA Paper from University Library of Munich, Germany

Abstract: 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.

Keywords: Minimum cost spanning tree problems; cost sharing; Bird rule; No Advantageous Merging (search for similar items in EconPapers)
JEL-codes: C71 D61 D7 (search for similar items in EconPapers)
Date: 2006-10-24
New Economics Papers: this item is included in nep-gth
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