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Efficient extensions of the Myerson value based on endogenous claims from players

Author

Listed:
  • Rong Zou

    (Northwestern Polytechnical University
    University of Twente
    Optimization and Artificial Intelligence)

  • Genjiu Xu

    (Northwestern Polytechnical University
    Optimization and Artificial Intelligence)

  • Dongshuang Hou

    (Northwestern Polytechnical University)

Abstract

We achieve two efficient extensions of the Myerson value by introducing the Shapley value of the original game as endogenous claims of players. Capturing the feature of insufficiency in the surplus to be divided, we identify a graph-induced bankruptcy problem. Two classical bankruptcy rules, namely the constrained equal awards rule and the constrained equal losses rule, are employed to efficiently extend the Myerson value, which correspondingly brings about the efficient constrained equal awards Myerson value and the efficient constrained equal losses Myerson value. The two efficient graph game values are characterized by axiomatic approaches.

Suggested Citation

  • 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.
  • Handle: RePEc:spr:annopr:v:323:y:2023:i:1:d:10.1007_s10479-023-05221-9
    DOI: 10.1007/s10479-023-05221-9
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    References listed on IDEAS

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    More about this item

    Keywords

    Efficient extension; Myerson value; Bankruptcy problem; Constrained equal awards; Constrained equal losses;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • D60 - Microeconomics - - Welfare Economics - - - General

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