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Minimum cost spanning tree games and spillover stability

Author

Listed:
  • Ruud Hendrickx
  • Jacco Thijssen
  • Peter Borm

Abstract

This article discusses interactive minimum cost spanning tree problems and argues that the standard approach of using a transferable utility game to come up with a fair allocation of the total costs has some flaws. A new model of spillover games is presented, in which each player’s decision whether or not to cooperate is properly taken into account. Copyright The Author(s) 2012

Suggested Citation

  • Ruud Hendrickx & Jacco Thijssen & Peter Borm, 2012. "Minimum cost spanning tree games and spillover stability," Theory and Decision, Springer, vol. 73(3), pages 441-451, September.
    • Handle: RePEc:kap:theord:v:73:y:2012:i:3:p:441-451
    DOI: 10.1007/s11238-011-9262-7
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    References listed on IDEAS

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    5. Bloch, Francis, 1996. "Sequential Formation of Coalitions in Games with Externalities and Fixed Payoff Division," Games and Economic Behavior, Elsevier, vol. 14(1), pages 90-123, May.
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    More about this item

    Keywords

    Minimum cost spanning tree problems; Transferable utility games; Spillovers; C71; C72;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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