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From hierarchies to levels: new solutions for games with hierarchical structure

Author

Listed:
  • M. Álvarez-Mozos

    (Universitat de Barcelona)

  • R. Brink

    (VU Amsterdam)

  • G. Laan

    (VU Amsterdam)

  • O. Tejada

    (ETH Zurich)

Abstract

Recently, applications of cooperative game theory to economic allocation problems have gained popularity. In many of these problems, players are organized according to either a hierarchical structure or a levels structure that restrict the players’ possibilities to cooperate. In this paper, we propose three new solutions for games with hierarchical structure and characterize them by properties that relate a player’s payoff to the payoffs of other players located in specific positions in the hierarchical structure relative to that player. To define each solution, we consider a certain mapping that transforms the hierarchical structure into a levels structure, and then we apply the standard generalization of the Shapley value to the class of games with levels structure. Such transformation mappings are studied by means of properties that relate a player’s position in both types of structure.

Suggested Citation

  • M. Álvarez-Mozos & R. Brink & G. Laan & O. Tejada, 2017. "From hierarchies to levels: new solutions for games with hierarchical structure," International Journal of Game Theory, Springer;Game Theory Society, vol. 46(4), pages 1089-1113, November.
    • Handle: RePEc:spr:jogath:v:46:y:2017:i:4:d:10.1007_s00182-017-0572-z
    DOI: 10.1007/s00182-017-0572-z
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    Cited by:

    1. M. Álvarez-Mozos & R. Brink & G. Laan & O. Tejada, 2017. "From hierarchies to levels: new solutions for games with hierarchical structure," International Journal of Game Theory, Springer;Game Theory Society, vol. 46(4), pages 1089-1113, November.
    2. Manfred Besner, 2022. "Harsanyi support levels solutions," Theory and Decision, Springer, vol. 93(1), pages 105-130, July.
    3. Sylvain Béal & Sylvain Ferrières & Philippe Solal, 2022. "The priority value for cooperative games with a priority structure," International Journal of Game Theory, Springer;Game Theory Society, vol. 51(2), pages 431-450, June.
    4. Besner, Manfred, 2018. "The weighted Shapley support levels values," MPRA Paper 87617, University Library of Munich, Germany.
    5. Besner, Manfred, 2020. "Values for level structures with polynomial-time algorithms, relevant coalition functions, and general considerations," MPRA Paper 99355, University Library of Munich, Germany.
    6. Encarnacion Algaba & Rene van den Brink, 2021. "Networks, Communication and Hierarchy: Applications to Cooperative Games," Tinbergen Institute Discussion Papers 21-019/IV, Tinbergen Institute.
    7. Xun-Feng Hu & Deng-Feng Li, 2021. "The Equal Surplus Division Value for Cooperative Games with a Level Structure," Group Decision and Negotiation, Springer, vol. 30(6), pages 1315-1341, December.
    8. Xianghui Li & Yang Li, 2021. "On the Structural Stability of Values for Cooperative Games," Journal of Optimization Theory and Applications, Springer, vol. 189(3), pages 873-888, June.
    9. Besner, Manfred, 2017. "Weighted Shapley levels values," MPRA Paper 82978, University Library of Munich, Germany.

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    More about this item

    Keywords

    TU-game; Hierarchical structure; Levels structure; Shapley value; Axiomatization;
    All these keywords.

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General

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