Minimum cost connection networks: truth-telling and implementation
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Minimum cost connection networks : truth-telling and implementation. / Hougaard, Jens Leth; Tvede, Mich.
Department of Food and Resource Economics, University of Copenhagen, 2013.Research output: Working paper › Research
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TY - UNPB
T1 - Minimum cost connection networks
T2 - truth-telling and implementation
AU - Hougaard, Jens Leth
AU - Tvede, Mich
PY - 2013
Y1 - 2013
N2 - In the present paper we consider the allocation of cost in connection networks. Agents have connection demands in form of pairs of locations they want to be connected. Connections between locations are costly to build. The problem is to allocate costs of networks satisfying all connection demands. We use three axioms to characterize allocation rules that truthfully implement cost minimizing networks satisfying all connection demands in a game where: (1) a central planner announces an allocation rule and a cost estimation rule; (2) every agent reports her own connection demand as well as all connection costs; and, (3) the central planner selects a cost minimizing network satisfying reported connection demands based on estimated connection costs and allocates true connection costs of the selected network.
AB - In the present paper we consider the allocation of cost in connection networks. Agents have connection demands in form of pairs of locations they want to be connected. Connections between locations are costly to build. The problem is to allocate costs of networks satisfying all connection demands. We use three axioms to characterize allocation rules that truthfully implement cost minimizing networks satisfying all connection demands in a game where: (1) a central planner announces an allocation rule and a cost estimation rule; (2) every agent reports her own connection demand as well as all connection costs; and, (3) the central planner selects a cost minimizing network satisfying reported connection demands based on estimated connection costs and allocates true connection costs of the selected network.
M3 - Working paper
T3 - MSAP Working Paper Series
BT - Minimum cost connection networks
PB - Department of Food and Resource Economics, University of Copenhagen
ER -
ID: 105344529