Discussion Papers on Economics,
University of Southern Denmark, Department of Economics

Abstract: This paper introduces cooperative games arising from multi-depot Chinese postman problems and explores the properties of these games. A multi-depot Chinese postman problem (MDCP) is represented by a connected (di)graph G, a set of k depots that is a subset of the vertices of G, and a non-negative weight function on the edges of G. A solution to the MDCP is a minimum weight tour of the (di)graph that visits all edges (arcs) of the graph and that consists of a collection of subtours such that the subtours originate from different depots, and each subtour starts and ends at the same depot. A cooperative Chinese postman (CP) game is induced by a MDCP by associating every edge of the graph with a different player. This paper characterizes globally and locally k-CP balanced and submodular (di)graphs. A (di)graph G is called globally (locally) k-CP balanced (respectively submodular), if the induced CP game of the corresponding MDCP problem on G is balanced (respectively submodular) for any (some) choice of the locations of the k depots and every non-negative weight function.

Keywords: Chinese postman problem; cooperative game; submodularity; balancedness

JEL-codes: C71

20 pages, December 2, 2012

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