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- W1578565531 abstract "AbstractWe propose a simple non-cooperative mechanism of network formationin cost spanning tree problems. The only subgame equilibrium payoffisefficient. Moreover, we extend the result to the case of budget restrictions.The equilibrium payoffcan them be easily adapted to the framework ofSteiner trees.Keywords: efficiency, cost spanning tree problem, cost allocation,network formation, subgame perfect equilibrium, budget restrictions, Steinertrees 1Introduction Many problems involving network formation have been studied in the opera-tional research and the economic literature. The most explored issues in oper-ational research are the design of efficient algorithms and their computationalcomplexity. The economic literature focuses on aspects such like the cost shar-ing of the network and the design of mechanisms trying to explain the way inwhich the network forms.In this paper we focus in the cost sharing aspect. In particular, we studycost spanning tree problems (cstp). Consider that a group of agents, locatedat different geographical places, want some particular service which can only beprovided by a common supplier, called the source. Agents will be served throughconnections which entail some cost. However, they do not care whether theyare connected directly or indirectly to the source.There are many economic situations that can be modeled in this way. Forinstance, several towns may draw power from a common power plant, and hence" @default.
- W1578565531 created "2016-06-24" @default.
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- W1578565531 date "2004-01-01" @default.
- W1578565531 modified "2023-09-23" @default.
- W1578565531 title "Realizing efficient outcomes in cost spanning problems" @default.
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