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Allocation rules for fixed and flexible networks: the role of players and their links

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  • Borkotokey, Surajit
  • Sarangi, Sudipta

Abstract

We propose an allocation rule that takes into account the importance of players and their links and characterizes it for a fixed network. Unlike previous rules, our characterization does not require component additivity. Next, we extend it to flexible networks a la Jackson (2005). Finally, we provide a comparison with other fixed (network Myerson and Position value) and flexible network (player and link based) allocation rules through a number of examples.

Suggested Citation

  • Borkotokey, Surajit & Sarangi, Sudipta, 2011. "Allocation rules for fixed and flexible networks: the role of players and their links," MPRA Paper 38340, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:38340
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    File URL: https://mpra.ub.uni-muenchen.de/38340/1/MPRA_paper_38340.pdf
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    References listed on IDEAS

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    1. Marco Slikker, 2005. "A characterization of the position value," International Journal of Game Theory, Springer;Game Theory Society, vol. 33(4), pages 505-514, November.
    2. Jackson, Matthew O., 2005. "Allocation rules for network games," Games and Economic Behavior, Elsevier, vol. 51(1), pages 128-154, April.
    3. 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.
    4. Gilles, R.P. & Sarangi, S., 2003. "The Role of Trust in Costly Network Formation," Discussion Paper 2003-53, Tilburg University, Center for Economic Research.
    5. Sgroi, Daniel, 2008. "Social network theory, broadband and the future of the World Wide Web," Telecommunications Policy, Elsevier, vol. 32(1), pages 62-84, February.
    6. Kamijo, Yoshio, 2009. "A linear proportional effort allocation rule," Mathematical Social Sciences, Elsevier, vol. 58(3), pages 341-353, November.
    7. Borm, P.E.M. & Owen, G. & Tijs, S.H., 1992. "On the position value for communication situations," Other publications TiSEM 5a8473e4-1df7-42df-ad53-f, Tilburg University, School of Economics and Management.
    8. Guillaume Haeringer, 1999. "Weighted Myerson Value," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 1(02), pages 187-192.
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    Cited by:

    1. Sridhar Mandyam & Usha Sridhar, 2017. "DON and Shapley Value for Allocation among Cooperating Agents in a Network: Conditions for Equivalence," Studies in Microeconomics, , vol. 5(2), pages 143-161, December.

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    More about this item

    Keywords

    Network games; Allocation rules; Cooperative games;
    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
    • A14 - General Economics and Teaching - - General Economics - - - Sociology of Economics

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