Articles producció científica> Economia

A claims problem approach to the cost allocation of a minimum cost spanning tree

  • Identification data

    Identifier: imarina:9189731
    Authors:
    Gimenez-Gomez, Jose-ManuelPeris, Josep E.Subiza, Begona
    Abstract:
    We propose to allocate the cost of a minimum cost spanning tree by defining a claims problem and using claims rules, then providing easy and intuitive ways to distribute this cost. Depending on the starting point that we consider, we define two models. On the one hand, the benefit-sharing model considers individuals' costs to the source as the starting point, and then the benefit of building the efficient tree is shared by the agents. On the other hand, the costs-sharing model starts from the individuals' minimum connection costs (the cheapest connection they can use), and the additional cost, if any, is then allocated. As we prove, both approaches provide the same family of allocations for every minimum cost spanning tree problem. These models can be understood as a central planner who decides the best way to connect the agents (the efficient tree) and also establishes the amount each agent has to pay. In so doing, the central planner takes into account the maximum and minimum amount they should pay and some equity criteria given by a particular (claims) rule. We analyze some properties of this family of cost allocations, specially focusing in coalitional stability (core selection), a central concern in the literature on cost allocation.
  • Others:

    Author, as appears in the article.: Gimenez-Gomez, Jose-Manuel; Peris, Josep E.; Subiza, Begona;
    Department: Economia
    URV's Author/s: Giménez Gómez, José Manuel
    Keywords: Minimum cost spanning tree problem Cost sharing rules Core selection Claims problem
    Abstract: We propose to allocate the cost of a minimum cost spanning tree by defining a claims problem and using claims rules, then providing easy and intuitive ways to distribute this cost. Depending on the starting point that we consider, we define two models. On the one hand, the benefit-sharing model considers individuals' costs to the source as the starting point, and then the benefit of building the efficient tree is shared by the agents. On the other hand, the costs-sharing model starts from the individuals' minimum connection costs (the cheapest connection they can use), and the additional cost, if any, is then allocated. As we prove, both approaches provide the same family of allocations for every minimum cost spanning tree problem. These models can be understood as a central planner who decides the best way to connect the agents (the efficient tree) and also establishes the amount each agent has to pay. In so doing, the central planner takes into account the maximum and minimum amount they should pay and some equity criteria given by a particular (claims) rule. We analyze some properties of this family of cost allocations, specially focusing in coalitional stability (core selection), a central concern in the literature on cost allocation.
    Thematic Areas: Strategy and management Strategy and man Statistics, probability and uncertainty Operations research & management science Numerical analysis Modeling and simulation Management science and operations research Management of technology and innovation Interdisciplinar Economia Computational theory and mathematics Ciencias sociales
    Author's mail: josemanuel.gimenez@urv.cat
    Author identifier: 0000-0003-0202-4623
    Record's date: 2024-09-07
    Papper version: info:eu-repo/semantics/acceptedVersion
    Licence document URL: https://repositori.urv.cat/ca/proteccio-de-dades/
    Papper original source: Operational Research. 22 (3): 2785-2801
    APA: Gimenez-Gomez, Jose-Manuel; Peris, Josep E.; Subiza, Begona; (2022). A claims problem approach to the cost allocation of a minimum cost spanning tree. Operational Research, 22(3), 2785-2801. DOI: 10.1007/s12351-021-00632-7
    Entity: Universitat Rovira i Virgili
    Journal publication year: 2022
    Publication Type: Journal Publications
  • Keywords:

    Computational Theory and Mathematics,Management of Technology and Innovation,Management Science and Operations Research,Modeling and Simulation,Numerical Analysis,Operations Research & Management Science,Statistics, Probability and Uncertainty,Strategy and Man,Strategy and Management
    Minimum cost spanning tree problem
    Cost sharing rules
    Core selection
    Claims problem
    Strategy and management
    Strategy and man
    Statistics, probability and uncertainty
    Operations research & management science
    Numerical analysis
    Modeling and simulation
    Management science and operations research
    Management of technology and innovation
    Interdisciplinar
    Economia
    Computational theory and mathematics
    Ciencias sociales
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