Linking the Kar and Folk Solutions Through a Problem Separation Property

Christian Trudeau

No 1301, Working Papers from University of Windsor, Department of Economics

Abstract: Minimum cost spanning tree problems connect agents efficiently to a source with the cost of using an edge fixed. We revisit the dispute between the Kar and folk solutions, two solution concepts to divide the common cost of connection based on the Shapley value. We introduce a property called Weak Problem Separation that allows, under conditions, to divide the problem in two: connecting an agent to the source and connecting agents to each other. It allows us to characterize the set of all affine combinations of the Kar and folk solutions.

Keywords: Minimum cost spanning tree problems; folk solution; Kar solution; problem separability. (search for similar items in EconPapers)
JEL-codes: C71 D63 (search for similar items in EconPapers)
Pages: 19 pages
Date: 2013-01
New Economics Papers: this item is included in nep-gth
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Citations: View citations in EconPapers (3)

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http://web2.uwindsor.ca/economics/RePEc/wis/pdf/1301.pdf First version, 2013 (application/pdf)

Related works:
Journal Article: Linking the Kar and folk solutions through a problem separation property (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:wis:wpaper:1301

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