Use this identifier to quote or link this document: http://hdl.handle.net/2072/290742

A `solidarity' approach to the problem of sharing a network cost
Giménez Gómez, José M. (José Manuel); Subiza, Begoña
Universitat Rovira i Virgili. Departament d'Economia; Peris, Josep E.
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.
2016
33 - Economia
Jocs cooperatius
L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons: http://creativecommons.org/licenses/by-nc-nd/4.0/
23 p.
Working Paper
Universitat Rovira i Virgili. Centre de Recerca en Economia Industrial i Economia Pública
Documents de treball del Departament d'Economia;2016-29
         

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