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An axiomatic approach to composite solutions

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Author Info
Dinko Dimitrov () (Institute of Mathematical Economics, Bielefeld University)
Claus-Jochen Haake () (Institute of Mathematical Economics, Bielefeld University)

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Abstract

We investigate a situation in which gains from cooperation are represented by a cooperative TU-game and a solution proposes a division of coalitional worths. In addition, asymmetries among players outside the game are captured by a vector of exogenous weights. If a solution measures players' payoffs inherent in the game, and a coalition has formed, then the question is how to measure players' overall payoffs in that coalition. For this we introduce the notion of a composite solution. We provide an axiomatic characterization of a specific composite solution, in which exogenous weights enter in a proportional fashion.

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File URL: http://www.imw.uni-bielefeld.de/papers/files/imw-wp-385.pdf
File Format: application/pdf
File Function: First version, 2006
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Publisher Info
Paper provided by Bielefeld University, Institute of Mathematical Economics in its series Working Papers with number 385.

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Length: 11 pages
Date of creation: Nov 2006
Date of revision:
Handle: RePEc:bie:wpaper:385

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Postal: Postfach 10 01 31, 33501 Bielefeld
Web page: http://www.imw.uni-bielefeld.de/
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Related research
Keywords: composite solution; external weights;

Find related papers by JEL classification:
C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games

References listed on IDEAS
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  1. Dimitrov, Dinko & Haake, Claus-Jochen, 2008. "Stable governments and the semistrict core," Games and Economic Behavior, Elsevier, vol. 62(2), pages 460-475, March. [Downloadable!] (restricted)
  2. Haeringer, Guillaume, 2006. "A new weight scheme for the Shapley value," Mathematical Social Sciences, Elsevier, vol. 52(1), pages 88-98, July. [Downloadable!] (restricted)
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