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Cost allocation in shortest path games

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  • Mark Voorneveld
  • Sofia Grahn

Abstract

A class of cooperative games arising from shortest path problems is defined. These shortest path games are totally balanced and allow a population-monotonic allocation scheme. Possible methods for obtaining core elements are indicated; first, by relating to the allocation rules in taxation and bankruptcy problems, second, by constructing an explicit rule that takes opportunity costs into account by considering the costs of the second best alternative and that rewards players who are crucial to the construction of the shortest path. The core and the bargaining sets of Davis-Maschler and Mas-Colell are shown to coincide. Finally, noncooperative games arising from shortest path problems are introduced, in which players make bids or claims on paths. The core allocations of the cooperative shortest path game coincide with the payoff vectors in the strong Nash equilibria of the associated noncooperative shortest path game. Copyright Springer-Verlag Berlin Heidelberg 2002

Suggested Citation

  • Mark Voorneveld & Sofia Grahn, 2002. "Cost allocation in shortest path games," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 56(2), pages 323-340, November.
    • Handle: RePEc:spr:mathme:v:56:y:2002:i:2:p:323-340
    DOI: 10.1007/s001860200222
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    Citations

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    Cited by:

    1. Béal, Sylvain & Ferrières, Sylvain & Rémila, Eric & Solal, Philippe, 2018. "The proportional Shapley value and applications," Games and Economic Behavior, Elsevier, vol. 108(C), pages 93-112.
    2. Rosenthal, Edward C., 2013. "Shortest path games," European Journal of Operational Research, Elsevier, vol. 224(1), pages 132-140.
    3. Bahel, Eric & Gómez-Rúa, María & Vidal-Puga, Juan, 2024. "Stable and weakly additive cost sharing in shortest path problems," Journal of Mathematical Economics, Elsevier, vol. 110(C).
    4. Clempner, Julio B. & Poznyak, Alexander S., 2015. "Computing the strong Nash equilibrium for Markov chains games," Applied Mathematics and Computation, Elsevier, vol. 265(C), pages 911-927.
    5. Andreas Darmann & Christian Klamler & Ulrich Pferschy, 2015. "Sharing the Cost of a Path," Studies in Microeconomics, , vol. 3(1), pages 1-12, June.
    6. Rabia Nessah & Guoqiang Tian, 2009. "On the Existence of Strong Nash Equilibria," Working Papers 2009-ECO-06, IESEG School of Management.
    7. F. Fernández & J. Puerto, 2012. "The minimum cost shortest-path tree game," Annals of Operations Research, Springer, vol. 199(1), pages 23-32, October.
    8. Perea, F. & Puerto, J. & Fernández, F.R., 2009. "Modeling cooperation on a class of distribution problems," European Journal of Operational Research, Elsevier, vol. 198(3), pages 726-733, November.
    9. Rosenthal, Edward C., 2017. "A cooperative game approach to cost allocation in a rapid-transit network," Transportation Research Part B: Methodological, Elsevier, vol. 97(C), pages 64-77.
    10. Molinero, Xavier & Riquelme, Fabián & Serna, Maria, 2015. "Forms of representation for simple games: Sizes, conversions and equivalences," Mathematical Social Sciences, Elsevier, vol. 76(C), pages 87-102.

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