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A `solidarity' approach to the problem of sharing a network cost

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  • Giménez Gómez, José M. (José Manuel)
  • Subiza, Begoña

Abstract

A minimum cost spanning tree problem analyzes the way to efficiently connect individuals to a source when they are located at different places. Several rules have been defined to solve this problem. Our objective here is to propose a new approach that differentiates some costs that may deserve compensations (involuntary costs) from some other connection costs that may be considered voluntary. We therefore define a solidarity egalitarian solution, through which, the total cost is allocated by considering pay-backs to equalize the involuntary costs, thus fulfilling the weak stability condition of individual rationality. Keywords: Minimum cost spanning tree, Solidarity, Cost sharing, Egalitarian JEL classification: C71, D63, D71.

Suggested Citation

  • Giménez Gómez, José M. (José Manuel) & Subiza, Begoña, 2016. "A `solidarity' approach to the problem of sharing a network cost," Working Papers 2072/290742, Universitat Rovira i Virgili, Department of Economics.
    • Handle: RePEc:urv:wpaper:2072/290742
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    References listed on IDEAS

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    More about this item

    Keywords

    Jocs cooperatius; 33 - Economia;

    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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