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Algorithmic aspects of core nonemptiness and core stability

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Abstract

In 1944, Von Neumann and Morgenstern developed the concept of stable sets as a solution for coalitional games. Fifteen years later, Gillies popularized the concept of the core, which is a convex polytope when nonempty. In the next decade, Bondareva and Shapley formulated independently a theorem describing a necessary and sufficient condition for the non emptiness of the core, using the mathematical objects of minimal balanced collections. We start our investigations of the core by implementing Peleg's (1965) inductive method for generating the minimal balanced collections as a computer program, and then, an algorithm that checks if a game admits a nonempty core or not. In 2020, Grabisch and Sudhölter formulated a theorem describing a necessary and sufficient condition for a game to admit a stable core, using several mathematical objects and concepts such as nested balancedness, balanced subsets which generalized balanced collections, exact and vital coalitions, etc. In order to reformulate the aforementioned theorem as an algorithm, a set of coalitions has to be found that, among other conditions, determines the core of the game. We study core stability, geometric properties of the core, and in particular, such core determining sets of coalitions. Furthermore, we describe a procedure for checking whether a subset of a given set is balanced. Finally, we implement the algorithm as a computer program that allows to check if an arbitrary balanced game admits a stable core or not

Suggested Citation

  • Dylan Laplace Mermoud & Michel Grabisch & Peter Sudhölter, 2021. "Algorithmic aspects of core nonemptiness and core stability," Documents de travail du Centre d'Economie de la Sorbonne 21028, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
  • Handle: RePEc:mse:cesdoc:21028
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    References listed on IDEAS

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    1. Michel Grabisch & Peter Sudhölter, 2020. "Characterization of TU games with stable cores by nested balancedness," Documents de travail du Centre d'Economie de la Sorbonne 20009, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    2. Lloyd S. Shapley, 1967. "On balanced sets and cores," Naval Research Logistics Quarterly, John Wiley & Sons, vol. 14(4), pages 453-460.
    3. Shellshear, Evan & Sudhölter, Peter, 2009. "On core stability, vital coalitions, and extendability," Games and Economic Behavior, Elsevier, vol. 67(2), pages 633-644, November.
    4. Bezalel Peleg, 1965. "An inductive method for constructing mimmal balanced collections of finite sets," Naval Research Logistics Quarterly, John Wiley & Sons, vol. 12(2), pages 155-162, June.
    5. Lucas, William F., 1992. "Von Neumann-Morgenstern stable sets," Handbook of Game Theory with Economic Applications, in: R.J. Aumann & S. Hart (ed.), Handbook of Game Theory with Economic Applications, edition 1, volume 1, chapter 17, pages 543-590, Elsevier.
    6. Xiaotie Deng & Christos H. Papadimitriou, 1994. "On the Complexity of Cooperative Solution Concepts," Mathematics of Operations Research, INFORMS, vol. 19(2), pages 257-266, May.
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    More about this item

    Keywords

    core; stable sets; balanced collections; core stability; cooperative game;
    All these keywords.

    JEL classification:

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

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