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Two-Stage Allocation Rules

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  • Nils Roehl

    (University of Paderborn)

Abstract

Suppose some individuals are allowed to engage in different groups at the same time and they generate a certain welfare by cooperation. Finding appropriate ways for distributing this welfare is a non-trivial issue. The purpose of this work is to analyze two-stage allocation procedures where first each group receives a share of the welfare which is then, subsequently, distributed among the corresponding members. To study these procedures in a structured way, cooperative games and network games are combined in a general framework by using mathematical hypergraphs. Moreover, several convincing requirements on allocation procedures are discussed and formalized. Thereby it will be shown, for example, that the Position Value and iteratively applying the Myerson Value can be characterized by similar axiomatizations.

Suggested Citation

  • Nils Roehl, 2013. "Two-Stage Allocation Rules," Working Papers CIE 73, Paderborn University, CIE Center for International Economics.
    • Handle: RePEc:pdn:ciepap:73
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    File URL: http://groups.uni-paderborn.de/wp-wiwi/RePEc/pdf/ciepap/WP73.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Allocation Rules; Economic and Social Networks; Hypergraphs; Myerson Value; Position Value;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

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