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Cost allocation in connection and conflict problems on networks: a cooperative game theoretic approach

Horozoglu, Nayat (2012) Cost allocation in connection and conflict problems on networks: a cooperative game theoretic approach. PhD thesis, The London School of Economics and Political Science (LSE).

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Abstract

This thesis examines settings where multiple decision makers with conflicting interests benefit from cooperation in joint combinatorial optimisation problems. It draws on cooperative game theory, polyhedral theory and graph theory to address cost sharing in joint single-source shortest path problems and joint weighted minimum colouring problems. The primary focus of the thesis are problems where each agent corresponds to a vertex of an undirected complete graph, in which a special vertex represents the common supplier. The joint combinatorial optimisation problem consists of determining the shortest paths from the supplier to all other vertices in the graph. The optimal solution is a shortest path tree of the graph and the aim is to allocate the cost of this shortest path tree amongst the agents. The thesis defines shortest path tree problems, proposes allocation rules and analyses the properties of these allocation rules. It furthermore introduces shortest path tree games and studies the properties of these games. Various core allocations for shortest path tree games are introduced and polyhedral properties of the core are studied. Moreover, computational results on finding the core and the nucleolus of shortest path tree games for the application of cost allocation in Wireless Multihop Networks are presented. The secondary focus of the thesis are problems where each agent is interested in having access to a number of facilities but can be in conflict with other agents. If two agents are in conflict, then they should have access to disjoint sets of facilities. The aim is to allocate the cost of the minimum number of facilities required by the agents amongst them. The thesis models these cost allocation problems as a class of cooperative games called weighted minimum colouring games, and characterises total balancedness and submodularity of this class of games using the properties of the underlying graph.

Item Type: Thesis (PhD)
Additional Information: © 2012 Nayat Horozoglu
Library of Congress subject classification: H Social Sciences > HG Finance
Sets: Departments > Management Science Group
URI: http://etheses.lse.ac.uk/id/eprint/476

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