IDEAS home Printed from https://ideas.repec.org/a/eee/gamebe/v99y2016icp117-133.html
   My bibliography  Save this article

Ordinal equivalence of values, Pigou–Dalton transfers and inequality in TU-games

Author

Listed:
  • Chameni Nembua, C.
  • Miamo Wendji, C.

Abstract

The paper examines the assessment of inequality in TU-games when individual payoffs are modeled using a notion of value. Especially, it studies inequality that affects the payoffs of Linear, Efficient and Symmetric values (LES values). We use the Pigou–Dalton transfers principle and the Lorenz criterion to compare LES values of weakly linear games (Freixas, 2010) and shed light on transfers of payoffs that may result from substituting a given LES value for another. We also characterize weak linearity in terms of Pigou–Dalton transfers. Since such transfers preserve the ordinal equivalence of values, the paper studies the ordinal equivalence of LES values in TU-games. Our study covers four classes of games which are ranked by set inclusion as follows: strongly linear games, linear games, sharply linear games and weakly linear games. We characterize the ordinal equivalence of LES values for each of these subclasses of TU-games.

Suggested Citation

  • Chameni Nembua, C. & Miamo Wendji, C., 2016. "Ordinal equivalence of values, Pigou–Dalton transfers and inequality in TU-games," Games and Economic Behavior, Elsevier, vol. 99(C), pages 117-133.
    • Handle: RePEc:eee:gamebe:v:99:y:2016:i:c:p:117-133
    DOI: 10.1016/j.geb.2016.07.008
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0899825616300744
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.geb.2016.07.008?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Yuan Ju & Peter Borm & Pieter Ruys, 2007. "The consensus value: a new solution concept for cooperative games," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 28(4), pages 685-703, June.
    2. Einy, Ezra & Peleg, Bezalel, 1991. "Linear measures of inequality for cooperative games," Journal of Economic Theory, Elsevier, vol. 53(2), pages 328-344, April.
    3. Célestin Chameni Nembua & Nicolas Gabriel Andjiga, 2008. "Linear, efficient and symmetric values for TU-games," Economics Bulletin, AccessEcon, vol. 3(71), pages 1-10.
    4. Cowell, Frank A., 1980. "Generalized entropy and the measurement of distributional change," European Economic Review, Elsevier, vol. 13(1), pages 147-159, January.
    5. Ebert, Udo, 2010. "The decomposition of inequality reconsidered: Weakly decomposable measures," Mathematical Social Sciences, Elsevier, vol. 60(2), pages 94-103, September.
    6. Udo Ebert, 2009. "Taking empirical studies seriously: the principle of concentration and the measurement of welfare and inequality," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 32(4), pages 555-574, May.
    7. van den Brink, Rene, 2007. "Null or nullifying players: The difference between the Shapley value and equal division solutions," Journal of Economic Theory, Elsevier, vol. 136(1), pages 767-775, September.
    8. Shapley, L. S. & Shubik, Martin, 1954. "A Method for Evaluating the Distribution of Power in a Committee System," American Political Science Review, Cambridge University Press, vol. 48(3), pages 787-792, September.
    9. repec:ebl:ecbull:v:3:y:2008:i:71:p:1-10 is not listed on IDEAS
    10. Josep Freixas, 2010. "On ordinal equivalence of the Shapley and Banzhaf values for cooperative games," International Journal of Game Theory, Springer;Game Theory Society, vol. 39(4), pages 513-527, October.
    11. Célestin Chameni Nembua, 2006. "Linking Gini to Entropy : Measuring Inequality by an interpersonal class of indices," Economics Bulletin, AccessEcon, vol. 4(5), pages 1-9.
    12. repec:zbw:hohpro:325 is not listed on IDEAS
    13. Chameni Nembua, C., 2012. "Linear efficient and symmetric values for TU-games: Sharing the joint gain of cooperation," Games and Economic Behavior, Elsevier, vol. 74(1), pages 431-433.
    14. Freixas, Josep & Marciniak, Dorota & Pons, Montserrat, 2012. "On the ordinal equivalence of the Johnston, Banzhaf and Shapley power indices," European Journal of Operational Research, Elsevier, vol. 216(2), pages 367-375.
    15. Carreras, Francesc & Freixas, Josep, 2008. "On ordinal equivalence of power measures given by regular semivalues," Mathematical Social Sciences, Elsevier, vol. 55(2), pages 221-234, March.
    16. Nowak, Andrzej S & Radzik, Tadeusz, 1994. "A Solidarity Value for n-Person Transferable Utility Games," International Journal of Game Theory, Springer;Game Theory Society, vol. 23(1), pages 43-48.
    17. Ruiz, Luis M. & Valenciano, Federico & Zarzuelo, Jose M., 1998. "The Family of Least Square Values for Transferable Utility Games," Games and Economic Behavior, Elsevier, vol. 24(1-2), pages 109-130, July.
    18. Lawrence Diffo Lambo & Joël Moulen, 2002. "Ordinal equivalence of power notions in voting games," Theory and Decision, Springer, vol. 53(4), pages 313-325, December.
    19. Marcin Malawski, 2013. "“Procedural” values for cooperative games," International Journal of Game Theory, Springer;Game Theory Society, vol. 42(1), pages 305-324, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Aguiar, Victor H. & Pongou, Roland & Tondji, Jean-Baptiste, 2018. "A non-parametric approach to testing the axioms of the Shapley value with limited data," Games and Economic Behavior, Elsevier, vol. 111(C), pages 41-63.
    2. Sylvain Béal & Eric Rémila & Philippe Solal, 2019. "Coalitional desirability and the equal division value," Theory and Decision, Springer, vol. 86(1), pages 95-106, February.
    3. Nembua Célestin, Chameni & Wendji Clovis, Miamo, 2017. "On some decisive players for linear efficient and symmetric values in cooperative games with transferable utility," MPRA Paper 83670, University Library of Munich, Germany, revised 2017.
    4. Victor H. Aguiar & Roland Pongou & Roberto Serrano & Jean-Baptiste Tondji, 2018. "An Index of Unfairness," Working Papers 2018-9, Brown University, Department of Economics.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chameni Nembua, Célestin & Demsou, Themoi, 2013. "Ordinal equivalence of values and Pigou-Dalton transfers in TU-games," MPRA Paper 44895, University Library of Munich, Germany, revised 09 Mar 2013.
    2. Sylvain Béal & Eric Rémila & Philippe Solal, 2017. "Axiomatization and implementation of a class of solidarity values for TU-games," Theory and Decision, Springer, vol. 83(1), pages 61-94, June.
    3. Sylvain Béal & Eric Rémila & Philippe Solal, 2015. "A Class of Solidarity Allocation Rules for TU-games," Working Papers 2015-03, CRESE.
    4. Maimo, Clovis Wendji, 2017. "Matrix representation of TU-games for Linear Efficient and Symmetric values," MPRA Paper 82416, University Library of Munich, Germany.
    5. Emilio Calvo Ramón & Esther Gutiérrez-López, 2022. "The equal collective gains value in cooperative games," International Journal of Game Theory, Springer;Game Theory Society, vol. 51(1), pages 249-278, March.
    6. Nembua Célestin, Chameni & Wendji Clovis, Miamo, 2017. "On some decisive players for linear efficient and symmetric values in cooperative games with transferable utility," MPRA Paper 83670, University Library of Munich, Germany, revised 2017.
    7. Josep Freixas & Montserrat Pons, 2017. "Using the Multilinear Extension to Study Some Probabilistic Power Indices," Group Decision and Negotiation, Springer, vol. 26(3), pages 437-452, May.
    8. Lee, Joosung & Driessen, Theo S.H., 2012. "Sequentially two-leveled egalitarianism for TU games: Characterization and application," European Journal of Operational Research, Elsevier, vol. 220(3), pages 736-743.
    9. Casajus, André & Huettner, Frank, 2013. "Null players, solidarity, and the egalitarian Shapley values," Journal of Mathematical Economics, Elsevier, vol. 49(1), pages 58-61.
    10. Sylvain Béal & Eric Rémila & Philippe Solal, 2015. "Axioms of invariance for TU-games," International Journal of Game Theory, Springer;Game Theory Society, vol. 44(4), pages 891-902, November.
    11. Joseph Armel Momo Kenfack & Bertrand Tchantcho & Bill Proces Tsague, 2019. "On the ordinal equivalence of the Jonhston, Banzhaf and Shapley–Shubik power indices for voting games with abstention," International Journal of Game Theory, Springer;Game Theory Society, vol. 48(2), pages 647-671, June.
    12. Macho-Stadler, Inés & Pérez-Castrillo, David & Wettstein, David, 2018. "Values for environments with externalities – The average approach," Games and Economic Behavior, Elsevier, vol. 108(C), pages 49-64.
    13. Sylvain Béal & Florian Navarro, 2020. "Necessary versus equal players in axiomatic studies," Working Papers 2020-01, CRESE.
    14. René Brink & Yukihiko Funaki, 2015. "Implementation and axiomatization of discounted Shapley values," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 45(2), pages 329-344, September.
    15. Tadeusz Radzik, 2017. "On an extension of the concept of TU-games and their values," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 86(1), pages 149-170, August.
    16. Monisankar Bishnu & Sonali Roy, 2012. "Hierarchy of players in swap robust voting games," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 38(1), pages 11-22, January.
    17. Calvo, Emilio & Gutiérrez-López, Esther, 2021. "Recursive and bargaining values," Mathematical Social Sciences, Elsevier, vol. 113(C), pages 97-106.
    18. Chameni Nembua, C., 2012. "Linear efficient and symmetric values for TU-games: Sharing the joint gain of cooperation," Games and Economic Behavior, Elsevier, vol. 74(1), pages 431-433.
    19. Koji Yokote & Takumi Kongo & Yukihiko Funaki, 2021. "Redistribution to the less productive: parallel characterizations of the egalitarian Shapley and consensus values," Theory and Decision, Springer, vol. 91(1), pages 81-98, July.
    20. Josep Freixas & Sascha Kurz, 2014. "Enumeration of weighted games with minimum and an analysis of voting power for bipartite complete games with minimum," Annals of Operations Research, Springer, vol. 222(1), pages 317-339, November.

    More about this item

    Keywords

    Cooperative games; Desirability relation; Linear values; Weakly linear games; Pigou–Dalton transfers; Lorenz dominance;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:gamebe:v:99:y:2016:i:c:p:117-133. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/622836 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.