IDEAS home Printed from https://ideas.repec.org/a/eee/matsoc/v129y2024icp52-60.html
   My bibliography  Save this article

Analysis of the core under inequality-averse utility functions

Author

Listed:
  • Takanashi, Seiji

Abstract

We reexamine core-stability, incorporating inequality-averse preferences and challenging the conventional core’s stability under such preferences. We integrate existing social preferences tied to inequality aversion into a cooperative game model with transferable utility (TU games), introducing a novel core. We characterize the new core through inequalities akin to the “coalitional rationality” in TU games and conduct a comparative statics analysis on two parameters–envy and sympathy–representing inequality aversion. Our findings reveal that an increase in the envy parameter reduces elements in the new core, while heightened sympathy does not consistently decrease core elements.

Suggested Citation

  • Takanashi, Seiji, 2024. "Analysis of the core under inequality-averse utility functions," Mathematical Social Sciences, Elsevier, vol. 129(C), pages 52-60.
    • Handle: RePEc:eee:matsoc:v:129:y:2024:i:c:p:52-60
    DOI: 10.1016/j.mathsocsci.2024.03.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0165489624000325
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.mathsocsci.2024.03.001?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 look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Dutta, Bhaskar & Ray, Debraj, 1989. "A Concept of Egalitarianism under Participation Constraints," Econometrica, Econometric Society, vol. 57(3), pages 615-635, May.
    2. Timothy Cason & Tatsuyoshi Saijo & Takehiko Yamato, 2002. "Voluntary Participation and Spite in Public Good Provision Experiments: An International Comparison," Experimental Economics, Springer;Economic Science Association, vol. 5(2), pages 133-153, October.
    3. Geoffroy de Clippel & Kareen Rozen, 2022. "Fairness through the Lens of Cooperative Game Theory: An Experimental Approach," American Economic Journal: Microeconomics, American Economic Association, vol. 14(3), pages 810-836, August.
    4. Ernst Fehr & Klaus M. Schmidt, 1999. "A Theory of Fairness, Competition, and Cooperation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(3), pages 817-868.
    5. Bogomolnaia, Anna & Jackson, Matthew O., 2002. "The Stability of Hedonic Coalition Structures," Games and Economic Behavior, Elsevier, vol. 38(2), pages 201-230, February.
    6. Tayfun Sönmez & Suryapratim Banerjee & Hideo Konishi, 2001. "Core in a simple coalition formation game," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 18(1), pages 135-153.
    7. Costa-Gomes, Miguel & Zauner, Klaus G., 2001. "Ultimatum Bargaining Behavior in Israel, Japan, Slovenia, and the United States: A Social Utility Analysis," Games and Economic Behavior, Elsevier, vol. 34(2), pages 238-269, February.
    8. Kota Saito, 2013. "Social Preferences under Risk: Equality of Opportunity versus Equality of Outcome," American Economic Review, American Economic Association, vol. 103(7), pages 3084-3101, December.
    9. Anindya Bhattacharya, 2004. "On the equal division core," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 22(2), pages 391-399, April.
    10. Roth, Alvin E. & Vesna Prasnikar & Masahiro Okuno-Fujiwara & Shmuel Zamir, 1991. "Bargaining and Market Behavior in Jerusalem, Ljubljana, Pittsburgh, and Tokyo: An Experimental Study," American Economic Review, American Economic Association, vol. 81(5), pages 1068-1095, December.
    11. Gary Charness & Matthew Rabin, 2002. "Understanding Social Preferences with Simple Tests," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(3), pages 817-869.
    12. Dutta, B, 1990. "The Egalitarian Solution and Reduced Game Properties in Convex Games," International Journal of Game Theory, Springer;Game Theory Society, vol. 19(2), pages 153-169.
    13. René Brink & Yukihiko Funaki & Yuan Ju, 2013. "Reconciling marginalism with egalitarianism: consistency, monotonicity, and implementation of egalitarian Shapley values," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 40(3), pages 693-714, March.
    14. Kirsten Rohde, 2010. "A preference foundation for Fehr and Schmidt’s model of inequity aversion," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 34(4), pages 537-547, April.
    15. Klijn, Flip & Slikker, Marco & Tijs, Stef & Zarzuelo, Jose, 2000. "The egalitarian solution for convex games: some characterizations," Mathematical Social Sciences, Elsevier, vol. 40(1), pages 111-121, July.
    16. Calleja, Pedro & Llerena, Francesc & Sudhölter, Peter, 2021. "Axiomatizations of Dutta-Ray’s egalitarian solution on the domain of convex games," Journal of Mathematical Economics, Elsevier, vol. 95(C).
    17. Javier Arin & Jeroen Kuipers & Dries Vermeulen, 2008. "An axiomatic approach to egalitarianism in TU-games," International Journal of Game Theory, Springer;Game Theory Society, vol. 37(4), pages 565-580, December.
    18. Ichiishi, Tatsuro, 1981. "A Social Coalitional Equilibrium Existence Lemma," Econometrica, Econometric Society, vol. 49(2), pages 369-377, March.
    19. Dietzenbacher, Bas, 2021. "Monotonicity and egalitarianism," Games and Economic Behavior, Elsevier, vol. 127(C), pages 194-205.
    20. Casajus, André & Huettner, Frank, 2014. "Weakly monotonic solutions for cooperative games," Journal of Economic Theory, Elsevier, vol. 154(C), pages 162-172.
    21. Takaaki Abe & Satoshi Nakada, 2019. "The weighted-egalitarian Shapley values," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 52(2), pages 197-213, February.
    22. Javier Arin & Elena Inarra, 2001. "Egalitarian solutions in the core," International Journal of Game Theory, Springer;Game Theory Society, vol. 30(2), pages 187-193.
    Full references (including those not matched with items on IDEAS)

    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. Dietzenbacher, Bas & Yanovskaya, Elena, 2020. "Antiduality in exact partition games," Mathematical Social Sciences, Elsevier, vol. 108(C), pages 116-121.
    2. Dietzenbacher, Bas & Dogan, Emre, 2024. "Population monotonicity and egalitarianism," Research Memorandum 007, Maastricht University, Graduate School of Business and Economics (GSBE).
    3. Bas Dietzenbacher & Elena Yanovskaya, 2021. "Consistency of the equal split-off set," International Journal of Game Theory, Springer;Game Theory Society, vol. 50(1), pages 1-22, March.
    4. Dietzenbacher, Bas, 2019. "The Procedural Egalitarian Solution and Egalitarian Stable Games," Other publications TiSEM 6caea8c0-1dcd-4038-88da-b, Tilburg University, School of Economics and Management.
    5. Branzei, Rodica & Dimitrov, Dinko & Tijs, Stef, 2004. "Egalitarianism in convex fuzzy games," Mathematical Social Sciences, Elsevier, vol. 47(3), pages 313-325, May.
    6. Cori Vilella & Francesc Llerena & Carles Rafels, 2015. "A simple procedure for computing strong constrained egalitarian allocations," Working Papers 327, Barcelona School of Economics.
    7. Ray, Debraj & Vohra, Rajiv, 2015. "Coalition Formation," Handbook of Game Theory with Economic Applications,, Elsevier.
    8. Takafumi Otsuka, 2020. "Egalitarian solution for games with discrete side payment," Papers 2003.10059, arXiv.org.
    9. Brânzei, R. & Llorca, N. & Sánchez-Soriano, J. & Tijs, S.H., 2007. "Egalitarianism in Multi-Choice Games," Discussion Paper 2007-55, Tilburg University, Center for Economic Research.
    10. Brânzei, R. & Llorca, N. & Sánchez-Soriano, J. & Tijs, S.H., 2007. "Egalitarianism in Multi-Choice Games," Other publications TiSEM bfbd67a5-701f-4be7-a1c9-0, Tilburg University, School of Economics and Management.
    11. Hougaard, Jens Leth & Østerdal, Lars Peter, 2010. "Monotonicity of social welfare optima," Games and Economic Behavior, Elsevier, vol. 70(2), pages 392-402, November.
    12. Dietzenbacher, Bas & Borm, Peter & Hendrickx, Ruud, 2017. "The procedural egalitarian solution," Games and Economic Behavior, Elsevier, vol. 106(C), pages 179-187.
    13. Bin Miao & Songfa Zhong, 2018. "Probabilistic social preference: how Machina’s Mom randomizes her choice," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 65(1), pages 1-24, January.
    14. Arnaud De Bruyn & Gary E. Bolton, 2008. "Estimating the Influence of Fairness on Bargaining Behavior," Management Science, INFORMS, vol. 54(10), pages 1774-1791, October.
    15. Calleja, Pedro & Llerena, Francesc & Sudhölter, Peter, 2021. "Axiomatizations of Dutta-Ray’s egalitarian solution on the domain of convex games," Journal of Mathematical Economics, Elsevier, vol. 95(C).
    16. 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.
    17. Baghestanian, Sascha & Gortner, Paul J. & van der Weele, Joël J., 2015. "Peer effects and risk sharing in experimental asset markets," SAFE Working Paper Series 67, Leibniz Institute for Financial Research SAFE, revised 2015.
    18. Dietzenbacher, Bas, 2020. "Monotonicity and Egalitarianism (revision of CentER DP 2019-007)," Other publications TiSEM 295f156e-91ad-4177-b61a-1, Tilburg University, School of Economics and Management.
    19. Breitmoser, Yves & Vorjohann, Pauline, 2018. "Welfare-Based Altruism," Rationality and Competition Discussion Paper Series 89, CRC TRR 190 Rationality and Competition.
    20. Robert Jiro Netzer & Matthias Sutter, 2009. "Intercultural trust. An experiment in Austria and Japan," Working Papers 2009-05, Faculty of Economics and Statistics, Universität Innsbruck.

    More about this item

    Keywords

    Social preference; Inequality aversion; Cooperative game; Core;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

    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:matsoc:v:129:y:2024:i:c:p:52-60. 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/505565 .

    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.