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Axiomatizations of Two Types of Shapley Values for Games on Union Closed Systems

Author

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  • Rene van den Brink

    (VU University Amsterdam)

  • Ilya Katsev

    (Russian Academy of Sciences)

  • Gerard van der Laan

    (VU University Amsterdam)

Abstract

This discussion paper led to a publication in 'Economic Theory' , 47(1), 175-88. A situation in which a finite set of players can obtain certain payoffs by cooperation can be described by a cooperative game with transferable utility, or simply a TU-game. A (single-valued) solution for TU-games assigns a payoff distribution to every TU-game. A well-known solution is the Shapley value. In the literature various models of games with restricted cooperation can be found. So, instead of allowing all subsets of the player set N to form, it is assumed that the set of feasible coalitions is a subset of the power set of N. In this paper we consider such sets of feasible coalitions that are closed under union, i.e. for any two feasible coalitions also their union is feasible. We consider and axiomatize two solutions or rules for these games that generalize the Shapley value: one is obtained as the conjunctive permission value using a corresponding superior graph, the other is defined as the Shapley value of a modified game similar as the Myerson rule for conference structures.

Suggested Citation

  • Rene van den Brink & Ilya Katsev & Gerard van der Laan, 2009. "Axiomatizations of Two Types of Shapley Values for Games on Union Closed Systems," Tinbergen Institute Discussion Papers 09-064/1, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:20090064
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    References listed on IDEAS

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    Cited by:

    1. Sylvain Béal & Marc Deschamps & Mostapha Diss & Rodrigue Tido Takeng, 2024. "Cooperative games with diversity constraints," Working Papers hal-04447373, HAL.
    2. Sylvain Béal & André Casajus & Eric Rémila & Philippe Solal, 2021. "Cohesive efficiency in TU-games: axiomatizations of variants of the Shapley value, egalitarian values and their convex combinations," Annals of Operations Research, Springer, vol. 302(1), pages 23-47, July.
    3. Ulrich Faigle & Michel Grabisch, 2012. "Values for Markovian coalition processes," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 51(3), pages 505-538, November.
    4. René Brink & P. Herings & Gerard Laan & A. Talman, 2015. "The Average Tree permission value for games with a permission tree," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 58(1), pages 99-123, January.
    5. Béal, Sylvain & Moyouwou, Issofa & Rémila, Eric & Solal, Philippe, 2020. "Cooperative games on intersection closed systems and the Shapley value," Mathematical Social Sciences, Elsevier, vol. 104(C), pages 15-22.
    6. Béal, Sylvain & Rémila, Eric & Solal, Philippe, 2015. "Characterization of the Average Tree solution and its kernel," Journal of Mathematical Economics, Elsevier, vol. 60(C), pages 159-165.
    7. Sylvain Béal & André Casajus & Eric Rémila & Philippe Solal, 2019. "Cohesive efficiency in TU-games: Two extensions of the Shapley value," Working Papers 2019-03, CRESE.
    8. Encarnacion Algaba & Rene van den Brink, 2021. "Networks, Communication and Hierarchy: Applications to Cooperative Games," Tinbergen Institute Discussion Papers 21-019/IV, Tinbergen Institute.
    9. René Brink & Chris Dietz & Gerard Laan & Genjiu Xu, 2017. "Comparable characterizations of four solutions for permission tree games," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 63(4), pages 903-923, April.
    10. Julia Belau, 2013. "An outside-option-sensitive allocation rule for networks: the kappa-value," Economic Theory Bulletin, Springer;Society for the Advancement of Economic Theory (SAET), vol. 1(2), pages 175-188, November.
    11. Sylvain Béal & Issofa Moyouwou & Eric Rémila & Phillippe Solal, 2018. "Cooperative games on intersection closed systems and the Shapley value," Working Papers 2018-06, CRESE.
    12. Richard Baron & Sylvain Béal & Eric Rémila & Philippe Solal, 2011. "Average tree solutions and the distribution of Harsanyi dividends," International Journal of Game Theory, Springer;Game Theory Society, vol. 40(2), pages 331-349, May.
    13. Rene van den Brink & Ilya Katsev & Gerard van der Laan, 2023. "Properties of Solutions for Games on Union-Closed Systems," Mathematics, MDPI, vol. 11(4), pages 1-16, February.
    14. René van den Brink, 2017. "Games with a Permission Structure: a survey on generalizations and applications," Tinbergen Institute Discussion Papers 17-016/II, Tinbergen Institute.
    15. repec:hal:pseose:halshs-00749950 is not listed on IDEAS
    16. E. Algaba & J. Bilbao & R. Brink, 2015. "Harsanyi power solutions for games on union stable systems," Annals of Operations Research, Springer, vol. 225(1), pages 27-44, February.
    17. René Brink, 2017. "Games with a permission structure - A survey on generalizations and applications," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 25(1), pages 1-33, April.
    18. Emilio Calvo & Esther Gutiérrez-López, 2015. "The value in games with restricted cooperation," Discussion Papers in Economic Behaviour 0115, University of Valencia, ERI-CES.
    19. Derks, Jean, 2018. "The Shapley value of conjunctive-restricted games," Games and Economic Behavior, Elsevier, vol. 108(C), pages 146-151.
    20. Encarnacion Algaba & Rene van den Brink, 2019. "The Shapley Value and Games with Hierarchies," Tinbergen Institute Discussion Papers 19-064/II, Tinbergen Institute.
    21. Zhengxing Zou & Qiang Zhang, 2018. "Harsanyi power solution for games with restricted cooperation," Journal of Combinatorial Optimization, Springer, vol. 35(1), pages 26-47, January.

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    More about this item

    Keywords

    TU-game; restricted cooperation; union closed system; Shapley value; permission value; superior graph; axiomatization;
    All these keywords.

    JEL classification:

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

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