Decentralized Pricing in Minimum Cost Spanning Trees
Publikation: Working paper › Forskning
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Decentralized Pricing in Minimum Cost Spanning Trees. / Hougaard, Jens Leth; Moulin, Hervé; Østerdal, Lars Peter.
Department of Economics, University of Copenhagen, 2008.Publikation: Working paper › Forskning
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TY - UNPB
T1 - Decentralized Pricing in Minimum Cost Spanning Trees
AU - Hougaard, Jens Leth
AU - Moulin, Hervé
AU - Østerdal, Lars Peter
PY - 2008
Y1 - 2008
N2 - In the minimum cost spanning tree model we consider decentralized pricing rules, i.e. rules that cover at least the ecient cost while the price charged to each user only depends upon his own connection costs. We de ne a canonical pricing rule and provide two axiomatic characterizations. First, the canonical pricing rule is the smallest among 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.
AB - In the minimum cost spanning tree model we consider decentralized pricing rules, i.e. rules that cover at least the ecient cost while the price charged to each user only depends upon his own connection costs. We de ne a canonical pricing rule and provide two axiomatic characterizations. First, the canonical pricing rule is the smallest among 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.
KW - Faculty of Social Sciences
KW - pricing rule
KW - canonical pricing rule
KW - stand-alone cost
KW - decentralization
M3 - Working paper
BT - Decentralized Pricing in Minimum Cost Spanning Trees
PB - Department of Economics, University of Copenhagen
ER -
ID: 8318151