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Inferior players in simple games

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Author Info
Mika Widgrén () (Turku School of Economics and Centre for Economic Policy Research , Rehtorinpellonkatu 3, 20500 Turku, Finland.)
Stefan Napel () (WIOR, Universität Karlsruhe, D-76128 Karlsruhe, Germany.)

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Abstract

Power indices like those of Shapley and Shubik (1954) or Banzhaf (1965) measure the distribution of power in simple games. This paper points at a deficiency shared by all established indices: players who are inferior in the sense of having to accept (almost) no share of the spoils in return for being part of a winning coalition are assigned substantial amounts of power. A strengthened version of the dummy axiom based on a formalized notion of inferior players is a possible remedy. The axiom is illustrated first in a deterministic and then a probabilistic setting. With three axioms from the Banzhaf index, it uniquely characterizes the Strict Power Index (SPI). The SPI is shown to be a special instance of a more general family of power indices based on the inferior player axiom.

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Publisher Info
Article provided by Springer in its journal International Journal of Game Theory.

Volume (Year): 30 (2001)
Issue (Month): 2 ()
Pages: 209-220
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Handle: RePEc:spr:jogath:v:30:y:2001:i:2:p:209-220

Note: Received: December 1999/Final version: June 2001
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Related research
Keywords: cooperative games · power indices · coalition formation.;

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  1. Eva M. Meyersson & Trond Petersen & Rita Asplund, 2000. "Pay, Risk, and Productivity. The Case of Finland, 1980-1996," Discussion Papers 743, The Research Institute of the Finnish Economy. [Downloadable!]
  2. Christian Fahrholz & Philipp Mohl, 2004. "EMU-enlargement and the Reshaping of Decision-making within the ECB Governing Council: A Voting-Power Analysis," Eastward Enlargement of the Euro-zone Working Papers wp23, Free University Berlin, Jean Monnet Centre of Excellence, revised 01 Jun 2004. [Downloadable!]
  3. Mika Widgren, 2003. "Enlargements and the Principles of Designing EU -- Decision-Making Procedures," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  4. Pekka Ilmakunnas & Mika Maliranta, 2001. "The Turnover of Jobs and Workers in a Deep Recession: Evidence from the Finnish Business Sector," Discussion Papers 747, The Research Institute of the Finnish Economy. [Downloadable!]
  5. Erkki Koskela & Ronnie Schöb, 2001. "Optimal Factor Income Taxation in the Presence of Unemployment," Discussion Papers 758, The Research Institute of the Finnish Economy. [Downloadable!]
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  6. Erkki Koskela & Matti Virén, 2000. "Is There a Laffer Curve Between Aggregate Output and Public Sector Employment," Discussion Papers 737, The Research Institute of the Finnish Economy. [Downloadable!]
  7. Ari Hyytinen, 2002. "Loan Market Equilibrium with Difference of Opinion and Imperfect Competition (Revised version)," Discussion Papers 748, The Research Institute of the Finnish Economy. [Downloadable!]
  8. Powers, Joseph E., 2004. "Strategic Interaction in United States Fishery Management Councils," Marine Resource Economics, Marine Resources Foundation, vol. 19(4). [Downloadable!]
  9. Mika Widgrèn & Stefan Napel, 2001. "The Power of a Spatially Inferior Player," Discussion Papers 771, The Research Institute of the Finnish Economy. [Downloadable!]
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  10. Napel, Stefan & Widgren, Mika, 2002. "Strategic Power Revisited," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  11. Agnieszka Rusinowska, 2009. "The Hoede-Bakker index modified to the Shapley-Shubik and Holler-Packel indices," Post-Print halshs-00406430_v1, HAL. [Downloadable!]
  12. Napel,S. & Widgren,M., 2002. "Power measurement as sensitivity analysis : a unified approach," Working Papers 345, Bielefeld University, Institute of Mathematical Economics. [Downloadable!]
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