IDEAS home Printed from https://ideas.repec.org/a/spr/jogath/v49y2020i1d10.1007_s00182-019-00675-3.html
   My bibliography  Save this article

Population monotonic allocation schemes for games with externalities

Author

Listed:
  • Takaaki Abe

    (Waseda University)

Abstract

This paper provides conditions for a game with externalities to have a population monotonic allocation scheme (PMAS). We observe that the notion of convexity defined by Hafalir [Games Econ Behav 61:242–258, 2007] does not guarantee the existence of a PMAS in the presence of externalities. We introduce a new notion of convexity and show that while our convexity is not a stronger condition than Hafalir’s [Games Econ Behav 61:242–258, 2007] , it is a sufficient condition for a game to have a PMAS. Moreover, we show that the Aumann-Drèze value, which is defined for games with coalition structures, explicitly constructs a PMAS. In addition, we offer two necessary and sufficient conditions to guarantee a PMAS in the presence of externalities.

Suggested Citation

  • Takaaki Abe, 2020. "Population monotonic allocation schemes for games with externalities," International Journal of Game Theory, Springer;Game Theory Society, vol. 49(1), pages 97-117, March.
    • Handle: RePEc:spr:jogath:v:49:y:2020:i:1:d:10.1007_s00182-019-00675-3
    DOI: 10.1007/s00182-019-00675-3
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s00182-019-00675-3
    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/s00182-019-00675-3?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. Geoffroy de Clippel & Roberto Serrano, 2008. "Marginal Contributions and Externalities in the Value," Econometrica, Econometric Society, vol. 76(6), pages 1413-1436, November.
    2. Sprumont, Yves, 1990. "Population monotonic allocation schemes for cooperative games with transferable utility," Games and Economic Behavior, Elsevier, vol. 2(4), pages 378-394, December.
    3. Kóczy, László Á., 2009. "Sequential coalition formation and the core in the presence of externalities," Games and Economic Behavior, Elsevier, vol. 66(1), pages 559-565, May.
    4. 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).
    5. Bloch, Francis & van den Nouweland, Anne, 2014. "Expectation formation rules and the core of partition function games," Games and Economic Behavior, Elsevier, vol. 88(C), pages 339-353.
    6. Kim Hang Pham Do & Henk Norde, 2007. "The Shapley Value For Partition Function Form Games," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 9(02), pages 353-360.
    7. Inés Macho-Stadler & David Pérez-Castrillo & David Wettstein, 2010. "Dividends and weighted values in games with externalities," International Journal of Game Theory, Springer;Game Theory Society, vol. 39(1), pages 177-184, March.
    8. Takaaki Abe, 2018. "Stable coalition structures in symmetric majority games: a coincidence between myopia and farsightedness," Theory and Decision, Springer, vol. 85(3), pages 353-374, October.
    9. Barış Çiftçi & Peter Borm & Herbert Hamers, 2010. "Population monotonic path schemes for simple games," Theory and Decision, Springer, vol. 69(2), pages 205-218, August.
    10. M. J. Albizuri & J. Arin & J. Rubio, 2005. "An Axiom System For A Value For Games In Partition Function Form," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 7(01), pages 63-72.
    11. Koczy, Laszlo A. & Lauwers, Luc, 2004. "The coalition structure core is accessible," Games and Economic Behavior, Elsevier, vol. 48(1), pages 86-93, July.
    12. Hart, Sergiu & Mas-Colell, Andreu, 1989. "Potential, Value, and Consistency," Econometrica, Econometric Society, vol. 57(3), pages 589-614, May.
    13. Lloyd S. Shapley, 1967. "On balanced sets and cores," Naval Research Logistics Quarterly, John Wiley & Sons, vol. 14(4), pages 453-460.
    14. Takaaki Abe & Yukihiko Funaki, 2017. "The non-emptiness of the core of a partition function form game," International Journal of Game Theory, Springer;Game Theory Society, vol. 46(3), pages 715-736, August.
    15. F. Grafe & E. Iñarra & J. M. Zarzuelo, 1998. "Population monotonic allocation schemes on externality games," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 48(1), pages 71-80, September.
    16. Bolger, E M, 1989. "A Set of Axioms for a Value for Partition Function Games," International Journal of Game Theory, Springer;Game Theory Society, vol. 18(1), pages 37-44.
    17. Macho-Stadler, Ines & Perez-Castrillo, David & Wettstein, David, 2007. "Sharing the surplus: An extension of the Shapley value for environments with externalities," Journal of Economic Theory, Elsevier, vol. 135(1), pages 339-356, July.
    18. Ichiishi, Tatsuro, 1981. "Super-modularity: Applications to convex games and to the greedy algorithm for LP," Journal of Economic Theory, Elsevier, vol. 25(2), pages 283-286, October.
    19. Hafalir, Isa E., 2007. "Efficiency in coalition games with externalities," Games and Economic Behavior, Elsevier, vol. 61(2), pages 242-258, November.
    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, 2021. "Cartel Formation in Cournot Competition with Asymmetric Costs: A Partition Function Approach," Games, MDPI, vol. 12(1), pages 1-16, February.
    2. J. M. Alonso-Meijide & M. Álvarez-Mozos & M. G. Fiestras-Janeiro & A. Jiménez-Losada, 2022. "On convexity in cooperative games with externalities," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 74(1), pages 265-292, July.

    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. László Á. Kóczy, 2018. "Partition Function Form Games," Theory and Decision Library C, Springer, number 978-3-319-69841-0, September.
    2. Takaaki Abe & Yukihiko Funaki, 2021. "The projective core of symmetric games with externalities," International Journal of Game Theory, Springer;Game Theory Society, vol. 50(1), pages 167-183, March.
    3. Andrea Caggese & Ander Pérez-Orive, 2017. "Capital Misallocation and Secular Stagnation," Finance and Economics Discussion Series 2017-009, Board of Governors of the Federal Reserve System (U.S.).
    4. J. M. Alonso-Meijide & M. Álvarez-Mozos & M. G. Fiestras-Janeiro & A. Jiménez-Losada, 2021. "Marginality and convexity in partition function form games," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 94(1), pages 99-121, August.
    5. Inés Macho-Stadler & David Pérez-Castrillo & David Wettstein, 2017. "Extensions of the Shapley value for Environments with Externalities," Working Papers 1002, Barcelona School of Economics.
    6. Dutta, Bhaskar & Ehlers, Lars & Kar, Anirban, 2010. "Externalities, potential, value and consistency," Journal of Economic Theory, Elsevier, vol. 145(6), pages 2380-2411, November.
    7. Geoffroy de Clippel & Roberto Serrano, 2008. "Marginal Contributions and Externalities in the Value," Econometrica, Econometric Society, vol. 76(6), pages 1413-1436, November.
    8. M. Álvarez-Mozos & O. Tejada, 2015. "The Banzhaf value in the presence of externalities," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 44(4), pages 781-805, April.
    9. Effrosyni Diamantoudi & Inés Macho-Stadler & David Pérez-Castrillo & Licun Xue, 2015. "Sharing the surplus in games with externalities within and across issues," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 60(2), pages 315-343, October.
    10. Álvarez-Mozos, Mikel & Ehlers, Lars, 2024. "Externalities and the (pre)nucleolus in cooperative games," Mathematical Social Sciences, Elsevier, vol. 128(C), pages 10-15.
    11. Oskar Skibski & Tomasz Michalak, 2020. "Fair division in the presence of externalities," International Journal of Game Theory, Springer;Game Theory Society, vol. 49(1), pages 147-172, March.
    12. Skibski, Oskar & Michalak, Tomasz P. & Wooldridge, Michael, 2018. "The Stochastic Shapley Value for coalitional games with externalities," Games and Economic Behavior, Elsevier, vol. 108(C), pages 65-80.
    13. Andr'e Casajus & Yukihiko Funaki & Frank Huettner, 2024. "Random partitions, potential, value, and externalities," Papers 2402.00394, arXiv.org, revised Jun 2024.
    14. Takaaki Abe, 2018. "Consistency and the core in games with externalities," International Journal of Game Theory, Springer;Game Theory Society, vol. 47(1), pages 133-154, March.
    15. Inés Macho-Stadler & David Pérez-Castrillo & David Wettstein, 2010. "Dividends and weighted values in games with externalities," International Journal of Game Theory, Springer;Game Theory Society, vol. 39(1), pages 177-184, March.
    16. Grabisch, Michel & Funaki, Yukihiko, 2012. "A coalition formation value for games in partition function form," European Journal of Operational Research, Elsevier, vol. 221(1), pages 175-185.
    17. Michel Grabisch, 2010. "The lattice of embedded subsets," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00457827, HAL.
    18. Borm, Peter & Ju, Yuan & Wettstein, David, 2015. "Rational bargaining in games with coalitional externalities," Journal of Economic Theory, Elsevier, vol. 157(C), pages 236-254.
    19. Macho-Stadler, Inés & Pérez-Castrillo, David & Wettstein, David, 2018. "Values for environments with externalities – The average approach," Games and Economic Behavior, Elsevier, vol. 108(C), pages 49-64.
    20. Frank Huettner & André Casajus, 2019. "Marginality, dividends, and the value in games with externalities," ESMT Research Working Papers ESMT-19-01, ESMT European School of Management and Technology.

    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:49:y:2020:i:1:d:10.1007_s00182-019-00675-3. 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.