Economic Theory

, Volume 43, Issue 2, pp 227–262 | Cite as

Minimum cost spanning tree problems with groups

Research Article

Abstract

We study minimum cost spanning tree problems with groups. We assume that agents are located in different villages, cities, etc. The groups are the agents of the same village. We introduce a rule for dividing the cost of connecting all agents to the source among the agents taking into account the group structure. We characterize this rule with several desirable properties. We prove that this rule coincides with the Owen value of the TU game associated with the irreducible matrix.

Keywords

Minimum cost spanning tree problems Coalitional value Cost allocation 

JEL Classification

C71 D70 D85 

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Copyright information

© Springer-Verlag 2009

Authors and Affiliations

  1. 1.Research Group in Economic Analysis, Facultade de Ciencias Económicas e EmpresariaisUniversidade de VigoVigoSpain

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