A Characterization of Graphs with Small Palette Index

Given an edge-coloring of a graph G, we associate to every vertex v of G the set of colors appearing on the edges incident with v. The palette index of G is defined as the minimum number of such distinct sets, taken over all possible edge-colorings of G. A graph with a small palette index admits an edge-coloring which can be locally considered to be almost symmetric, since few different sets of colors appear around its vertices. Graphs with palette index 1 are r-regular graphs admitting an r-edge-coloring, while regular graphs with palette index 2 do not exist. Here, we characterize all graphs with palette index either 2 or 3 in terms of the existence of suitable decompositions in regular subgraphs. As a corollary, we obtain a complete characterization of regular graphs with palette index 3.