Decentralized Pricing in Minimum Cost Spanning Trees

Speaker:  Jens Leth Hougaard - University of Copenhagen
  Friday, November 14, 2008 at 1:30 PM Biblioteca DSE

In the minimum cost spanning tree model we consider decentralized pricing rules, i.e. rules that cover at least the effcient cost while the price charged to each user only depends upon his own connection costs. We define a canonical pricing rule and provide two axiomatic characterizations. First, the canonical pricing rule is the smallestamong those that improve upon the Stand Alone bound, and are either superadditive or piece-wise linear in connection costs. Our second, direct characterization relies on two simple properties highlighting the special role of the source cost.

Documents
Title Format  (Language, Size, Publication date)
Paper  pdfpdf (it, 182 KB, 13/11/08)

Programme Director
Angelo Zago

Publication date
November 13, 2008

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