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A non-cooperative approach to the folk rule in minimum cost spanning tree problems

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  • Hernández, Penélope
  • Peris, Josep E.
  • Vidal-Puga, Juan

Abstract

This paper deals with the problem of finding a way to distribute the cost of a minimum cost spanning tree problem between the players. A rule that assigns a payoff to each player provides this distribution. An optimistic point of view is considered to devise a cooperative game. Following this optimistic approach, a sequential game provides this construction to define the action sets of the players. The main result states the existence of a unique cost allocation in subgame perfect equilibria. This cost allocation matches the one suggested by the folk rule.

Suggested Citation

  • Hernández, Penélope & Peris, Josep E. & Vidal-Puga, Juan, 2023. "A non-cooperative approach to the folk rule in minimum cost spanning tree problems," European Journal of Operational Research, Elsevier, vol. 307(2), pages 922-928.
  • Handle: RePEc:eee:ejores:v:307:y:2023:i:2:p:922-928
    DOI: 10.1016/j.ejor.2022.09.015
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    Cited by:

    1. Bergantiños, Gustavo & Vidal-Puga, Juan, 2020. "Cooperative games for minimum cost spanning tree problems," MPRA Paper 104911, University Library of Munich, Germany.

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    More about this item

    Keywords

    Game theory; Minimum cost spanning tree; Cost allocation; Subgame perfect equilibrium;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations

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