Bird's tree allocations revisited

Minimum cost spanning tree (mcst) construction and cost allocation problems have been studied extensively in the literature, though usually not together. Bird (1976) proposes an allocation rule of which Granot and Huberman (1981) prove that it lies in the core of the associated mcst game. We show that the problems of finding an mcst and allocating its cost can be integrated. Furthermore, we provide an axiomatic characterization of the set of all Bird’s tree allocations using consistency, converse consistency, non-emptyness and efficiency, and give a strategic form game of which the set of Nash equilibria contains Bird’s tree allocations.