IDEAS home Printed from https://ideas.repec.org/p/arx/papers/2302.00608.html
   My bibliography  Save this paper

The Investment Management Game: Extending the Scope of the Notion of Core

Author

Listed:
  • Vijay V. Vazirani

Abstract

The core is a dominant solution concept in economics and cooperative game theory; it is predominantly used for profit, equivalently cost or utility, sharing. This paper demonstrates the versatility of this notion by proposing a completely different use: in a so-called investment management game, which is a game against nature rather than a cooperative game. This game has only one agent whose strategy set is all possible ways of distributing her money among investment firms. The agent wants to pick a strategy such that in each of exponentially many future scenarios, sufficient money is available in the right firms so she can buy an optimal investment for that scenario. Such a strategy constitutes a core imputation under a broad interpretation, though traditional formal framework, of the core. Our game is defined on perfect graphs, since the maximum stable set problem can be solved in polynomial time for such graphs. We completely characterize the core of this game, analogous to Shapley and Shubik characterization of the core of the assignment game. A key difference is the following technical novelty: whereas their characterization follows from total unimodularity, ours follows from total dual integrality

Suggested Citation

  • Vijay V. Vazirani, 2023. "The Investment Management Game: Extending the Scope of the Notion of Core," Papers 2302.00608, arXiv.org, revised Sep 2023.
    • Handle: RePEc:arx:papers:2302.00608
    as

    Download full text from publisher

    File URL: http://arxiv.org/pdf/2302.00608
    File Function: Latest version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Tamás Király & Júlia Pap, 2008. "Total Dual Integrality of Rothblum's Description of the Stable-Marriage Polyhedron," Mathematics of Operations Research, INFORMS, vol. 33(2), pages 283-290, May.
    2. Péter Biró & Walter Kern & Daniël Paulusma, 2012. "Computing solutions for matching games," International Journal of Game Theory, Springer;Game Theory Society, vol. 41(1), pages 75-90, February.
    3. Hiroshi Nagamochi & Dao-Zhi Zeng & Naohiśa Kabutoya & Toshihide Ibaraki, 1997. "Complexity of the Minimum Base Game on Matroids," Mathematics of Operations Research, INFORMS, vol. 22(1), pages 146-164, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Vijay V. Vazirani, 2023. "LP-Duality Theory and the Cores of Games," Papers 2302.07627, arXiv.org, revised Mar 2023.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Vijay V. Vazirani, 2023. "LP-Duality Theory and the Cores of Games," Papers 2302.07627, arXiv.org, revised Mar 2023.
    2. Vijay V. Vazirani, 2022. "Cores of Games via Total Dual Integrality, with Applications to Perfect Graphs and Polymatroids," Papers 2209.04903, arXiv.org, revised Nov 2022.
    3. Frits Hof & Walter Kern & Sascha Kurz & Kanstantsin Pashkovich & Daniël Paulusma, 2020. "Simple games versus weighted voting games: bounding the critical threshold value," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 54(4), pages 609-621, April.
    4. Vijay V. Vazirani, 2024. "The Assignment Game: New Mechanisms for Equitable Core Imputations," Papers 2402.11437, arXiv.org.
    5. Xiaotie Deng & Toshihide Ibaraki & Hiroshi Nagamochi, 1999. "Algorithmic Aspects of the Core of Combinatorial Optimization Games," Mathematics of Operations Research, INFORMS, vol. 24(3), pages 751-766, August.
    6. Stefano Moretti & Henk Norde, 2022. "Some new results on generalized additive games," International Journal of Game Theory, Springer;Game Theory Society, vol. 51(1), pages 87-118, March.
    7. Vijay V. Vazirani, 2022. "New Characterizations of Core Imputations of Matching and $b$-Matching Games," Papers 2202.00619, arXiv.org, revised Dec 2022.
    8. Demetrescu, Camil & Lupia, Francesco & Mendicelli, Angelo & Ribichini, Andrea & Scarcello, Francesco & Schaerf, Marco, 2019. "On the Shapley value and its application to the Italian VQR research assessment exercise," Journal of Informetrics, Elsevier, vol. 13(1), pages 87-104.
    9. Peter Biro & Walter Kern & Daniel Paulusma & Peter Wojuteczky, 2015. "The Stable Fixtures Problem with Payments," CERS-IE WORKING PAPERS 1545, Institute of Economics, Centre for Economic and Regional Studies.
    10. Zhuan Khye Koh & Laura Sanità, 2020. "Stabilizing Weighted Graphs," Mathematics of Operations Research, INFORMS, vol. 45(4), pages 1318-1341, November.
    11. Biró, Péter & Kern, Walter & Paulusma, Daniël & Wojuteczky, Péter, 2018. "The stable fixtures problem with payments," Games and Economic Behavior, Elsevier, vol. 108(C), pages 245-268.
    12. Peter Biro & Matthijs Bomhoff & Walter Kern & Petr A. Golovach & Daniel Paulusma, 2012. "Solutions for the Stable Roommates Problem with Payments," CERS-IE WORKING PAPERS 1211, Institute of Economics, Centre for Economic and Regional Studies.
    13. Qin Chen & Xujin Chen & Wenan Zang, 2016. "A Polyhedral Description of Kernels," Mathematics of Operations Research, INFORMS, vol. 41(3), pages 969-990, August.
    14. Vijay V. Vazirani, 2021. "The General Graph Matching Game: Approximate Core," Papers 2101.07390, arXiv.org, revised Jul 2021.
    15. Han Xiao & Tianhang Lu & Qizhi Fang, 2021. "Approximate Core Allocations for Multiple Partners Matching Games," Papers 2107.01442, arXiv.org, revised Oct 2021.
    16. Akiyoshi Shioura, 2017. "On the Partnership formation problem," The Journal of Mechanism and Institution Design, Society for the Promotion of Mechanism and Institution Design, University of York, vol. 2(1), pages 105-140, December.
    17. Vazirani, Vijay V., 2022. "The general graph matching game: Approximate core," Games and Economic Behavior, Elsevier, vol. 132(C), pages 478-486.
    18. F.Javier Martínez-de-Albéniz & Carles Rafels & Neus Ybern, 2015. "Insights into the nucleolus of the assignment game," UB School of Economics Working Papers 2015/333, University of Barcelona School of Economics.
    19. Adil Baykasoğlu & Burcu Kubur Özbel, 2021. "Explicit flow-risk allocation for cooperative maximum flow problems under interval uncertainty," Operational Research, Springer, vol. 21(3), pages 2149-2179, September.
    20. Han Xiao & Qizhi Fang, 2022. "Population monotonicity in matching games," Journal of Combinatorial Optimization, Springer, vol. 43(4), pages 699-709, May.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arx:papers:2302.00608. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: arXiv administrators (email available below). General contact details of provider: http://arxiv.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.