Abstract
Centralized networks arise in the context of communications between terminals and a Central processing unit or in the context of the design of local distribution network. The basic problem of cost allocation in a network is: “How much should each user be charged for his portion of the services supplied”? The minimum cost required to connect all the consumers to the central supplier (using arcs of the network) is the length of a shortest spanning tree. The question then is how to divide the total cost of this shortest spanning tree to the consumers. In this paper, we present a relative study of a number of possible cost-allocation methods. Based on the suggested criteria formulated as a tradeoff between the satisfaction of user and company holders, a comparative evaluation is tabulated, which can be used as a qualitative guideline while forming a “reliable” as well as near optimal cost-allocation strategy depending upon the locally prevailing conditions also.
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