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Implementing cooperative solution concepts: a generalized bidding approach

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  • Yuan Ju

    ()

  • David Wettstein

    ()

Abstract

This paper provides a framework for implementing and comparing several solution concepts for transferable utility cooperative games.We construct bidding mechanisms where players bid for the role of the proposer. The mechanisms differ in the power awarded to the proposer. The Shapley, consensus and equal surplus values are implemented in subgame perfect equilibrium outcomes as power shifts away from the proposer to the rest of the players. Moreover, an alternative informational structure where these solution concepts can be implemented without imposing any conditions of the transferable utility game is discussed as well.

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Bibliographic Info

Article provided by Springer in its journal Economic Theory.

Volume (Year): 39 (2009)
Issue (Month): 2 (May)
Pages: 307-330

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Handle: RePEc:spr:joecth:v:39:y:2009:i:2:p:307-330

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Related research

Keywords: Implementation; Bidding mechanism; Shapley value; Consensus value; Equal surplus value; C71; C72; D62;

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References

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  1. Ju, Y. & Borm, P.E.M., 2005. "Externalities and Compensation: Primeval Games and Solutions," Discussion Paper 2005-71, Tilburg University, Center for Economic Research.
  2. Macho-Stadler, Ines & Perez-Castrillo, David & Wettstein, David, 2006. "Efficient bidding with externalities," Games and Economic Behavior, Elsevier, vol. 57(2), pages 304-320, November.
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Citations

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Cited by:
  1. René van den Brink & Yukihiko Funaki & Yuan Ju, 2007. "Consistency, Monotonicity and Implementation of Egalitarian Shapley Values," Tinbergen Institute Discussion Papers 07-062/1, Tinbergen Institute.
  2. Ju, Y. & Borm, P.E.M. & Ruys, P.H.M., 2004. "The Consensus Value: A New Solution Concept for Cooperative Games," Discussion Paper 2004-50, Tilburg University, Center for Economic Research.
  3. Yuan Ju & Peter Borm, 2005. "Externalities and Compensation:Primeval Games and Solutions," Keele Economics Research Papers KERP 2005/05, Centre for Economic Research, Keele University.
  4. Rene van den Brink & Gerard van der Laan & Nigel Moes, 2012. "A Strategic Implementation of the Average Tree Solution for Cycle-Free Graph Games," Tinbergen Institute Discussion Papers 12-050/1, Tinbergen Institute.
  5. Rene van den Brink & Gerard van der Laan & Nigel Moes, 2012. "A Strategic Implementation of the Average Tree Solution for Cycle-Free Graph Games," Tinbergen Institute Discussion Papers 12-050/1, Tinbergen Institute.
  6. David Pérez-Castrillo & Nicolas Quérou, 2010. "Smooth Multibidding Mechanisms," Working Papers 520, Barcelona Graduate School of Economics.
  7. Ju, Y. & Borm, P.E.M., 2006. "A Non-cooperative Approach to the Compensation Rules for Primeval Games," Discussion Paper 2006-97, Tilburg University, Center for Economic Research.
  8. Gustavo Bergantiños & María Gómez-Rúa, 2010. "Minimum cost spanning tree problems with groups," Economic Theory, Springer, vol. 43(2), pages 227-262, May.
  9. Ju, Yuan, 2012. "Reject and renegotiate: The Shapley value in multilateral bargaining," Journal of Mathematical Economics, Elsevier, vol. 48(6), pages 431-436.
  10. René Brink & Yukihiko Funaki & Yuan Ju, 2013. "Reconciling marginalism with egalitarianism: consistency, monotonicity, and implementation of egalitarian Shapley values," Social Choice and Welfare, Springer, vol. 40(3), pages 693-714, March.
  11. Toyotaka Sakai, 2012. "Fair waste pricing: an axiomatic analysis to the NIMBY problem," Economic Theory, Springer, vol. 50(2), pages 499-521, June.
  12. Emilio Calvo & Esther Gutiérrez-López, 2014. "A strategic approach for the discounted Shapley values," Discussion Papers in Economic Behaviour 0414, University of Valencia, ERI-CES.
  13. Rene van den Brink & Youngsub Chun & Yuan Ju, 2014. "Auctioning and Selling Positions: A Non-cooperative Approach to Queuing Conflicts," Tinbergen Institute Discussion Papers 14-016/II, Tinbergen Institute.
  14. René van den Brink & Yukihiko Funaki & Yuan Ju, 2007. "Consistency, Monotonicity and Implementation of Egalitarian Shapley Values," Tinbergen Institute Discussion Papers 07-062/1, Tinbergen Institute.
  15. Rene van den Brink & Yukihiko Funaki, 2010. "Axiomatization and Implementation of Discounted Shapley Values," Tinbergen Institute Discussion Papers 10-065/1, Tinbergen Institute.

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