The purpose of this paper is to describe a very powerful decomposition
construction for perfect secret-sharing schemes. We give several appl
ications of the construction and improve previous results by showing t
hat for any graph G of maximum degree d, there is a perfect secret-sha
ring scheme for G with information rate 2/(d + 1). As a corollary, the
maximum information rate of secret-sharing schemes for paths on more
than three vertices and for cycles on more than four vertices is shown
to be 2/3.