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Generalized externality games: economic applications

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  • Corcho, Paula

Abstract

This paper analyzes two specific economic problems: The division of profits between associated firms and the distribution of cost of a public good. We tackle these problems using game theoretic techniques. To do so, a new c1ass of games in characteristic function form, called Generalizad Externality Games is defined in this paper. Sorne attractive features of this c1ass of games are that the core is non-empty and that these new games there seems to be a connection with relational goods.

Suggested Citation

  • Corcho, Paula, 1996. "Generalized externality games: economic applications," UC3M Working papers. Economics 3979, Universidad Carlos III de Madrid. Departamento de Economía.
    • Handle: RePEc:cte:werepe:3979
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    1. Inarra, Elena & Usategui, Jose M, 1993. "The Shapley Value and Average Convex Games," International Journal of Game Theory, Springer;Game Theory Society, vol. 22(1), pages 13-29.
    2. Carole Uhlaner, 1989. "“Relational goods” and participation: Incorporating sociability into a theory of rational action," Public Choice, Springer, vol. 62(3), pages 253-285, September.
    3. Moulin, Herve, 1992. " All Sorry to Disagree: A General Principle for the Provision of Nonrival Goods," Scandinavian Journal of Economics, Wiley Blackwell, vol. 94(1), pages 37-51.
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    Relations Goods;

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