IDEAS home Printed from https://ideas.repec.org/a/spr/jogath/v47y2018i4d10.1007_s00182-017-0605-7.html
   My bibliography  Save this article

A Shapley value representation of network potentials

Author

Listed:
  • Satoshi Nakada

    (Hitotsubashi University)

Abstract

We consider network formation games by Jackson and Wolinsky (J Econ Theory 71:44–74, 1996) and characterize the class of games that have a network potential. We show that there exists a network potential if and only if each player’s payoff function can be represented as the Shapley value of a special class of cooperative games indexed by the networks. We also show that a network potential coincides with a potential of the same class of cooperative games.

Suggested Citation

  • Satoshi Nakada, 2018. "A Shapley value representation of network potentials," International Journal of Game Theory, Springer;Game Theory Society, vol. 47(4), pages 1151-1157, November.
    • Handle: RePEc:spr:jogath:v:47:y:2018:i:4:d:10.1007_s00182-017-0605-7
    DOI: 10.1007/s00182-017-0605-7
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s00182-017-0605-7
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s00182-017-0605-7?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. Furusawa, Taiji & Konishi, Hideo, 2007. "Free trade networks," Journal of International Economics, Elsevier, vol. 72(2), pages 310-335, July.
    2. Jackson, Matthew O. & Wolinsky, Asher, 1996. "A Strategic Model of Social and Economic Networks," Journal of Economic Theory, Elsevier, vol. 71(1), pages 44-74, October.
    3. Slade, Margaret E, 1994. "What Does an Oligopoly Maximize?," Journal of Industrial Economics, Wiley Blackwell, vol. 42(1), pages 45-61, March.
    4. Hart, Sergiu & Mas-Colell, Andreu, 1989. "Potential, Value, and Consistency," Econometrica, Econometric Society, vol. 57(3), pages 589-614, May.
    5. Giovanni Facchini & Freek van Megen & Peter Borm & Stef Tijs, 1997. "Congestion Models And Weighted Bayesian Potential Games," Theory and Decision, Springer, vol. 42(2), pages 193-206, March.
    6. Ui, Takashi, 2000. "A Shapley Value Representation of Potential Games," Games and Economic Behavior, Elsevier, vol. 31(1), pages 121-135, April.
    7. Sanjeev Goyal & Sumit Joshi, 2006. "Bilateralism And Free Trade," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 47(3), pages 749-778, August.
    8. Subhadip Chakrabarti & Robert Gilles, 2007. "Network potentials," Review of Economic Design, Springer;Society for Economic Design, vol. 11(1), pages 13-52, June.
    9. Palsule-Desai, Omkar D. & Tirupati, Devanath & Chandra, Pankaj, 2013. "Stability issues in supply chain networks: Implications for coordination mechanisms," International Journal of Production Economics, Elsevier, vol. 142(1), pages 179-193.
    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. Takaaki Abe & Satoshi Nakada, 2023. "Potentials and solutions of cooperative games with a fixed player set," International Journal of Game Theory, Springer;Game Theory Society, vol. 52(3), pages 757-774, September.

    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. Ana Mauleon & Huasheng Song & Vincent Vannetelbosch, 2010. "Networks of Free Trade Agreements among Heterogeneous Countries," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 12(3), pages 471-500, June.
    2. Nathalie Jorzik & Frank Mueller‐Langer, 2020. "Multilateral stability and efficiency of trade agreements: A network formation approach," The World Economy, Wiley Blackwell, vol. 43(2), pages 355-370, February.
    3. Jean-François Caulier & Ana Mauleon & Vincent Vannetelbosch, 2013. "Contractually stable networks," International Journal of Game Theory, Springer;Game Theory Society, vol. 42(2), pages 483-499, May.
    4. Palsule-Desai, Omkar D., 2015. "Cooperatives for fruits and vegetables in emerging countries: Rationalization and impact of decentralization," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 81(C), pages 114-140.
    5. Gilles, R.P. & Sarangi, S., 2003. "The Role of Trust in Costly Network Formation," Discussion Paper 2003-53, Tilburg University, Center for Economic Research.
    6. Stoyanov, Andrey & Yildiz, Halis Murat, 2015. "Preferential versus multilateral trade liberalization and the role of political economy," European Economic Review, Elsevier, vol. 80(C), pages 140-164.
    7. Jun, Tackseung & Kim, Jeong-Yoo, 2009. "Hypergraph Formation Game," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 50(2), pages 1-16, December.
    8. Noriaki Matsushima, 2009. "Vertical Mergers And Product Differentiation," Journal of Industrial Economics, Wiley Blackwell, vol. 57(4), pages 812-834, December.
    9. Kamal Saggi & Halis Murat Yildiz, 2018. "Bilateralism, multilateralism, and the quest for global free trade," World Scientific Book Chapters, in: Kamal Saggi (ed.), Economic Analysis of the Rules and Regulations of the World Trade Organization, chapter 7, pages 156-167, World Scientific Publishing Co. Pte. Ltd..
    10. Gusev, Vasily V., 2021. "Nash-stable coalition partition and potential functions in games with coalition structure," European Journal of Operational Research, Elsevier, vol. 295(3), pages 1180-1188.
    11. Hellmann, Tim & Staudigl, Mathias, 2014. "Evolution of social networks," European Journal of Operational Research, Elsevier, vol. 234(3), pages 583-596.
    12. Subhadip Chakrabarti & Robert Gilles, 2007. "Network potentials," Review of Economic Design, Springer;Society for Economic Design, vol. 11(1), pages 13-52, June.
    13. May, Daniel & McCorriston, Steve, 2015. "Global Agreements in Agriculture: A Network Approach with Market Intermediaries," 2015 Conference, August 9-14, 2015, Milan, Italy 212451, International Association of Agricultural Economists.
    14. Kamal Saggi & Halis Murat Yildiz, 2018. "Bilateral Trade Agreements and the Feasibility of Multilateral Free Trade," World Scientific Book Chapters, in: Kamal Saggi (ed.), Economic Analysis of the Rules and Regulations of the World Trade Organization, chapter 8, pages 168-185, World Scientific Publishing Co. Pte. Ltd..
    15. May, D. & McCorriston, S., 2018. "The role of Centrality in Preventing Free Trade of Processed Agricultural Goods under Imperfect Competition," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277262, International Association of Agricultural Economists.
    16. Jin Zhang & Licun Xue & Lei Zu, 2013. "Farsighted free trade networks," International Journal of Game Theory, Springer;Game Theory Society, vol. 42(2), pages 375-398, May.
    17. PAPACCIO, Anna, 2013. "Bilateralism and Multilateralism: a Network Approach," CELPE Discussion Papers 125, CELPE - CEnter for Labor and Political Economics, University of Salerno, Italy.
    18. Philippe Jehiel & Moritz Meyer-ter-Vehn & Benny Moldovanu, 2008. "Ex-post implementation and preference aggregation via potentials," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 37(3), pages 469-490, December.
    19. Daniel E. May, 2015. "Inefficient Stable International Trade Networks," Studies in Microeconomics, , vol. 3(1), pages 13-34, June.
    20. Zhang, Jin & Cui, Zhiwei & Zu, Lei, 2014. "The evolution of free trade networks," Journal of Economic Dynamics and Control, Elsevier, vol. 38(C), pages 72-86.

    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:spr:jogath:v:47:y:2018:i:4:d:10.1007_s00182-017-0605-7. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.