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Priority relations and cooperation with multiple activity levels

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  • Lowing, David
  • Techer, Kevin

Abstract

This paper analyzes cooperation situations between heterogeneous players. It considers two types of heterogeneity. First, the players are differentiated with respect to a priority structure. This structure captures asymmetries between players, which may reflect exogenous rights, different needs, merit, or hierarchical constraints. Second, each player may have different cooperation possibilities represented by a set of activity levels. To analyze these situations, we enrich the model of multi-choice games, which is a natural extension of transferable utility games, with a priority structure. A new value on the class of multi-choice games with a priority structure is introduced. To accommodate the different activity levels and the asymmetries between players, this value follows an allocation process based on a lexicographic procedure. New axioms for multi-choice games with a priority structure are introduced. These axioms endogenously determine the lexicographic procedure used to define the value. Two axiomatic characterizations of this value are provided.

Suggested Citation

  • Lowing, David & Techer, Kevin, 2022. "Priority relations and cooperation with multiple activity levels," Journal of Mathematical Economics, Elsevier, vol. 102(C).
    • Handle: RePEc:eee:mateco:v:102:y:2022:i:c:s0304406822000738
    DOI: 10.1016/j.jmateco.2022.102740
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    Cited by:

    1. David Lowing, 2023. "Allocation rules for multi-choice games with a permission tree structure," Annals of Operations Research, Springer, vol. 320(1), pages 261-291, January.
    2. David Lowing & Léa Munich & Kevin Techer, 2024. "Allocating the common costs of a public service operator: an axiomatic approach," Working Papers 2024-05, CRESE.
    3. David Lowing & Makoto Yokoo, 2023. "Sharing values for multi-choice games: an axiomatic approach," Working Papers hal-04018735, HAL.

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