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Lexicographic allocations and extreme core payoffs: the case of assignment games

Author

Listed:
  • Marina Núnez

    (Department of Mathematical Economics, Finance and Actuarial Sciences, University of Barcelona)

  • Tamás Solymosi

    (‘Momentum’ Game Theory Research Group, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences)

Abstract

We consider various lexicographic allocation procedures for coalitional games with transferable utility where the payoffs are computed in an externally given order of the players. The common feature of the methods is that if the allocation is in the core, it is an extreme point of the core. We first investigate the general relationships between these allocations and obtain two hierarchies on the class of balanced games. Secondly, we focus on assignment games and sharpen some of these general relationships. Our main result is the coincidence of the sets of lemarals (vectors of lexicographic maxima over the set of dual coalitionally rational payoff vectors), lemacols (vectors of lexicographic maxima over the core) and extreme core points. As byproducts, we show that, similarly to the core and the coalitionally rational payoff set, also the dual coalitionally rational payoff set of an assignment game is determined by the individual and mixed-pair coalitions, and present an efficient and elementary way to compute these basic dual coalitional values. This provides a way to compute the Alexia value (the average of all lemacols) with no need to obtain the whole coalitional function of the dual assignment game.

Suggested Citation

  • Marina Núnez & Tamás Solymosi, 2014. "Lexicographic allocations and extreme core payoffs: the case of assignment games," CERS-IE WORKING PAPERS 1425, Institute of Economics, Centre for Economic and Regional Studies.
  • Handle: RePEc:has:discpr:1425
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    References listed on IDEAS

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    1. Josep Izquierdo & Marina Núñez & Carles Rafels, 2007. "A simple procedure to obtain the extreme core allocations of an assignment market," International Journal of Game Theory, Springer;Game Theory Society, vol. 36(1), pages 17-26, September.
    2. Guillermo Owen, 1992. "The Assignment Game : The Reduced Game," Annals of Economics and Statistics, GENES, issue 25-26, pages 71-79.
    3. repec:adr:anecst:y:1992:i:25-26:p:03 is not listed on IDEAS
    4. Hamers, Herbert & Klijn, Flip & Solymosi, Tamas & Tijs, Stef & Pere Villar, Joan, 2002. "Assignment Games Satisfy the CoMa-Property," Games and Economic Behavior, Elsevier, vol. 38(2), pages 231-239, February.
    5. J. R. G. van Gellekom & J. A. M. Potters & J. H. Reijnierse, 1999. "Prosperity properties of TU-games," International Journal of Game Theory, Springer;Game Theory Society, vol. 28(2), pages 211-227.
    6. Tijs, Stef & Borm, Peter & Lohmann, Edwin & Quant, Marieke, 2011. "An average lexicographic value for cooperative games," European Journal of Operational Research, Elsevier, vol. 213(1), pages 210-220, August.
    7. Kuipers, Jeroen, 1993. "On the Core of Information Graph Games," International Journal of Game Theory, Springer;Game Theory Society, vol. 21(4), pages 339-350.
    8. Martínez-de-Albéniz, F. Javier & Núñez, Marina & Rafels, Carles, 2011. "Assignment markets with the same core," Games and Economic Behavior, Elsevier, vol. 73(2), pages 553-563.
    9. Biswas, A. K. & Parthasarathy, T. & Potters, J. A. M. & Voorneveld, M., 1999. "Large Cores and Exactness," Games and Economic Behavior, Elsevier, vol. 28(1), pages 1-12, July.
    10. 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.
    11. Takumi Kongo & Yukihiko Funaki & Rodica Branzei & Stef Tijs, 2010. "Non-Cooperative And Axiomatic Characterizations Of The Average Lexicographic Value," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 12(04), pages 417-435.
    12. T. E. S. Raghavan & Tamás Solymosi, 2001. "Assignment games with stable core," International Journal of Game Theory, Springer;Game Theory Society, vol. 30(2), pages 177-185.
    13. Leonard, Herman B, 1983. "Elicitation of Honest Preferences for the Assignment of Individuals to Positions," Journal of Political Economy, University of Chicago Press, vol. 91(3), pages 461-479, June.
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    Cited by:

    1. Grabisch, Michel & Sudhölter, Peter, 2018. "On a class of vertices of the core," Games and Economic Behavior, Elsevier, vol. 108(C), pages 541-557.
    2. Marina Núñez, 2016. "Comments on: Remarkable polyhedra related to set functions, games and capacities," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 24(2), pages 327-329, July.
    3. R. Branzei & E. Gutiérrez & N. Llorca & J. Sánchez-Soriano, 2021. "Does it make sense to analyse a two-sided market as a multi-choice game?," Annals of Operations Research, Springer, vol. 301(1), pages 17-40, June.
    4. Martínez-de-Albéniz, F. Javier & Rafels, Carlos & Ybern, Neus, 2020. "Assortative multisided assignment games: The extreme core points," Games and Economic Behavior, Elsevier, vol. 120(C), pages 144-153.

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    More about this item

    Keywords

    Assignment game; extreme core payoff; Alexia value;
    All these keywords.

    JEL classification:

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

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