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The Effects of Excluding Coalitions

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  • Tobias Hiller

    (Institute for Theoretical Economics, University of Leipzig, D-04109 Leipzig, Germany
    HR Department, TU Dresden, D-01062 Dresden, Germany)

Abstract

One problem in cooperative game theory is to model situations when two players refuse to cooperate (or the problem of quarreling members in coalitions). One example of such exclusions is the coalition statements of parliamentary parties. Other situations in which incompatible players affect the outcome are teams in firms and markets, for example. To model these exclusions in cooperative game theory, the excluded coalitions value ( φ E value) was introduced. This value is based on the Shapley value and takes into account that players exclude coalitions with other players. In this article, we deduce some properties of this new value. After some general results, we analyze the apex game that could be interpreted as a team situation and the glove game that models markets where sellers and buyers deal. For team situations, we show that all employees have a common interest for cooperation. On asymmetric markets, excluding coalitions affect the market players of the scarce side to a higher extent.

Suggested Citation

  • Tobias Hiller, 2018. "The Effects of Excluding Coalitions," Games, MDPI, vol. 9(1), pages 1-7, January.
    • Handle: RePEc:gam:jgames:v:9:y:2018:i:1:p:1-:d:124945
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    References listed on IDEAS

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    Cited by:

    1. Rodolfo Metulini & Giorgio Gnecco, 2023. "Measuring players’ importance in basketball using the generalized Shapley value," Annals of Operations Research, Springer, vol. 325(1), pages 441-465, June.
    2. Tobias Hiller, 2023. "Measuring the Difficulties in Forming a Coalition Government," Games, MDPI, vol. 14(2), pages 1-15, March.

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