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Equivalence and axiomatization of solutions for cooperative games with circular communication structure

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  • Selçuk, Özer
  • Suzuki, Takamasa
  • Talman, Dolf

Abstract

We study cooperative games with transferable utility and limited cooperation possibilities. The focus is on communication structures where the set of players forms a circle, so that the possibilities of cooperation are represented by the connected sets of nodes of an undirected circular graph. Single-valued solutions are considered which are the average of specific marginal vectors. A marginal vector is deduced from a permutation on the player set and assigns as payoff to a player his marginal contribution when he joins his predecessors in the permutation. We compare the collection of all marginal vectors that are deduced from the permutations in which every player is connected to his immediate predecessor with the one deduced from the permutations in which every player is connected to at least one of his predecessors. The average of the first collection yields the average tree solution and the average of the second one is the Shapley value for augmenting systems. Although the two collections of marginal vectors are different and the second collection contains the first one, it turns out that both solutions coincide on the class of circular graph games. Further, an axiomatization of the solution is given using efficiency, linearity, some restricted dummy property, and some kind of symmetry.

Suggested Citation

  • Selçuk, Özer & Suzuki, Takamasa & Talman, Dolf, 2013. "Equivalence and axiomatization of solutions for cooperative games with circular communication structure," Economics Letters, Elsevier, vol. 121(3), pages 428-431.
  • Handle: RePEc:eee:ecolet:v:121:y:2013:i:3:p:428-431
    DOI: 10.1016/j.econlet.2013.09.009
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    References listed on IDEAS

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    1. Herings, P.J.J. & van der Laan, G. & Talman, A.J.J. & Yang, Z., 2010. "The average tree solution for cooperative games with communication structure," Games and Economic Behavior, Elsevier, vol. 68(2), pages 626-633, March.
    2. Debasis Mishra & A. Talman, 2010. "A characterization of the average tree solution for tree games," International Journal of Game Theory, Springer;Game Theory Society, vol. 39(1), pages 105-111, March.
    3. Roger B. Myerson, 1977. "Graphs and Cooperation in Games," Mathematics of Operations Research, INFORMS, vol. 2(3), pages 225-229, August.
    4. Herings, P. Jean Jacques & van der Laan, Gerard & Talman, Dolf, 2008. "The average tree solution for cycle-free graph games," Games and Economic Behavior, Elsevier, vol. 62(1), pages 77-92, January.
    5. Bilbao, J.M. & Ordóñez, M., 2009. "Axiomatizations of the Shapley value for games on augmenting systems," European Journal of Operational Research, Elsevier, vol. 196(3), pages 1008-1014, August.
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    Cited by:

    1. Liying Kang & Anna Khmelnitskaya & Erfang Shan & Dolf Talman & Guang Zhang, 2021. "The average tree value for hypergraph games," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 94(3), pages 437-460, December.
    2. Sylvain Béal & Eric Rémila & Philippe Solal, 2022. "Allocation rules for cooperative games with restricted communication and a priori unions based on the Myerson value and the average tree solution," Journal of Combinatorial Optimization, Springer, vol. 43(4), pages 818-849, May.

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    More about this item

    Keywords

    Cooperative game; Transferable utility; Graph structure; Marginal vectors; Shapley value; Average tree solution;
    All these keywords.

    JEL classification:

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

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