Lexicographic Composition of Simple Games
AbstractA two-house legislature can often be modelled as a proper simple game whose outcome depends on whether a coalition wins, blocks or loses in two smaller proper simple games. It is shown that there are exactly five ways to combine the smaller games into a larger one. This paper focuses on one of the rules, lexicographic composition, where a coalition wins G_1 => G_2 when it either wins in G_1, or blocks in G_1 and wins in G_2. It is the most decisive of the five. A lexicographically decomposable game is one that can be represented in this way using components whose player sets partition the whole set. Games with veto players are not decomposable, and anonymous games are decomposable if and only if they are decisive and have two or more players. If a player's benefit is assessed by any semi-value, then for two isomorphic games a player is better off from having a role in the first game than having the same role in the second. Lexicographic decomposability is sometimes compatible with equality of roles. A relaxation of it is suggested for its practical benefits.
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Bibliographic InfoPaper provided by UCLA Department of Economics in its series Levine's Bibliography with number 122247000000001223.
Date of creation: 03 Mar 2006
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Other versions of this item:
- Barry O'Neill & Bezalel Peleg, 2006. "Lexicographic Composition of Simple Games," Cowles Foundation Discussion Papers 1559, Cowles Foundation for Research in Economics, Yale University.
- Barry O'Neill & Bezalel Peleg, 2006. "Lexicographic Composition of Simple Games," Discussion Paper Series dp415, The Center for the Study of Rationality, Hebrew University, Jerusalem.
- C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
- D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
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- Pradeep Dubey & Abraham Neyman & Robert J. Weber, 1979. "Value Theory without Efficiency," Cowles Foundation Discussion Papers 513, Cowles Foundation for Research in Economics, Yale University.
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