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Efficient extensions of communication values

Author

Listed:
  • Sylvain Béal

    (Univ. Bourgogne Franche-Comté)

  • André Casajus

    (HHL Leipzig Graduate School of Management)

  • Frank Huettner

    (ESMT European School of Management and Technology)

Abstract

We study values for transferable utility games enriched by a communication graph. The most well-known such values are component-efficient and characterized by some deletion link property. We study efficient extensions of such values: for a given component-efficient value, we look for a value that (i) satisfies efficiency, (ii) satisfies the link-deletion property underlying the original component-efficient value, and (iii) coincides with the original component-efficient value whenever the underlying graph is connected. Béal et al. (Soc Choice Welf 45:819–827, 2015) prove that the Myerson value (Myerson in Math Oper Res 2:225–229, 1977) admits a unique efficient extension, which has been introduced by van den Brink et al. (Econ Lett 117:786–789, 2012). We pursue this line of research by showing that the average tree solution (Herings et al. in Games Econ Behav 62:77–92, 2008) and the compensation solution (Béal et al. in Int J Game Theory 41:157–178, 2012b) admit similar unique efficient extensions, and that there exists no efficient extension of the position value (Meessen in Communication games, 1988; Borm et al. in SIAM J Discrete Math 5:305–320, 1992). As byproducts, we obtain new characterizations of the average tree solution and the compensation solution, and of their efficient extensions.

Suggested Citation

  • Sylvain Béal & André Casajus & Frank Huettner, 2018. "Efficient extensions of communication values," Annals of Operations Research, Springer, vol. 264(1), pages 41-56, May.
  • Handle: RePEc:spr:annopr:v:264:y:2018:i:1:d:10.1007_s10479-017-2661-6
    DOI: 10.1007/s10479-017-2661-6
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    1. Guang Zhang & Erfang Shan & Liying Kang & Yanxia Dong, 2017. "Two efficient values of cooperative games with graph structure based on $$\tau $$ τ -values," Journal of Combinatorial Optimization, Springer, vol. 34(2), pages 462-482, August.
    2. Marco Slikker, 2005. "A characterization of the position value," International Journal of Game Theory, Springer;Game Theory Society, vol. 33(4), pages 505-514, November.
    3. Roger B. Myerson, 1977. "Graphs and Cooperation in Games," Mathematics of Operations Research, INFORMS, vol. 2(3), pages 225-229, August.
    4. S. Béal & A. Lardon & E. Rémila & P. Solal, 2012. "The average tree solution for multi-choice forest games," Annals of Operations Research, Springer, vol. 196(1), pages 27-51, July.
    5. AUMANN, Robert J. & DREZE, Jacques H., 1974. "Cooperative games with coalition structures," LIDAM Reprints CORE 217, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    6. Sylvain Béal & Eric Rémila & Philippe Solal, 2012. "Compensations in the Shapley value and the compensation solutions for graph games," International Journal of Game Theory, Springer;Game Theory Society, vol. 41(1), pages 157-178, February.
    7. van den Brink, René & Khmelnitskaya, Anna & van der Laan, Gerard, 2012. "An efficient and fair solution for communication graph games," Economics Letters, Elsevier, vol. 117(3), pages 786-789.
    8. Béal, Sylvain & Rémila, Eric & Solal, Philippe, 2012. "Fairness and fairness for neighbors: The difference between the Myerson value and component-wise egalitarian solutions," Economics Letters, Elsevier, vol. 117(1), pages 263-267.
    9. Borm, P.E.M. & Owen, G. & Tijs, S.H., 1992. "On the position value for communication situations," Other publications TiSEM 5a8473e4-1df7-42df-ad53-f, Tilburg University, School of Economics and Management.
    10. A. Ghintran & E. González-Arangüena & C. Manuel, 2012. "A probabilistic position value," Annals of Operations Research, Springer, vol. 201(1), pages 183-196, December.
    11. Herings, P. Jean Jacques & van der Laan, Gerard & Talman, Dolf, 2008. "The average tree solution for cycle-free graph games," Games and Economic Behavior, Elsevier, vol. 62(1), pages 77-92, January.
    12. Béal, Sylvain & Casajus, André & Huettner, Frank, 2016. "On the existence of efficient and fair extensions of communication values for connected graphs," Economics Letters, Elsevier, vol. 146(C), pages 103-106.
    13. Hart, Sergiu & Kurz, Mordecai, 1983. "Endogenous Formation of Coalitions," Econometrica, Econometric Society, vol. 51(4), pages 1047-1064, July.
    14. Sylvain Béal & André Casajus & Frank Huettner, 2015. "Efficient extensions of the Myerson value," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 45(4), pages 819-827, December.
    15. Gabrielle Demange, 2004. "On Group Stability in Hierarchies and Networks," Journal of Political Economy, University of Chicago Press, vol. 112(4), pages 754-778, August.
    16. Slikker, Marco, 2007. "Bidding for surplus in network allocation problems," Journal of Economic Theory, Elsevier, vol. 137(1), pages 493-511, November.
    17. Gérard Hamiache, 2012. "A Matrix Approach to TU Games with Coalition and Communication Structures," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 38(1), pages 85-100, January.
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    Cited by:

    1. Rong Zou & Genjiu Xu & Dongshuang Hou, 2023. "Efficient extensions of the Myerson value based on endogenous claims from players," Annals of Operations Research, Springer, vol. 323(1), pages 287-300, April.
    2. Xun-Feng Hu & Gen-Jiu Xu & Deng-Feng Li, 2019. "The Egalitarian Efficient Extension of the Aumann–Drèze Value," Journal of Optimization Theory and Applications, Springer, vol. 181(3), pages 1033-1052, June.
    3. C. Manuel & D. Martín, 2021. "A value for communication situations with players having different bargaining abilities," Annals of Operations Research, Springer, vol. 301(1), pages 161-182, June.
    4. Daniel Li Li & Erfang Shan, 2020. "Efficient quotient extensions of the Myerson value," Annals of Operations Research, Springer, vol. 292(1), pages 171-181, September.
    5. Erfang Shan & Jilei Shi & Wenrong Lyu, 2023. "The efficient partition surplus Owen graph value," Annals of Operations Research, Springer, vol. 320(1), pages 379-392, January.

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    More about this item

    Keywords

    Efficient extension; Average tree solution; Compensation solution; Position value; Component fairness; Relative fairness; Balanced link contributions; Myerson value; Component-wise egalitarian solution;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games

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