Link Monotonic Allocation Schemes
AbstractA network is a graph where the nodes represent players and the links represent bilateral interaction between the players. A reward game assigns a value to every network on a fixed set of players. An allocation scheme specifies how to distribute the worth of every network among the players. This allocation scheme is link monotonic if extending the network does not decrease the payoff of any player. We characterize the class of reward games that have a link monotonic allocation scheme. Two allocation schemes for reward games are studied, the Myerson allocation scheme and the position allocation scheme, which are both based on allocation rules for communication situations. We introduce two notions of convexity in the setting of reward games and with these notions of convexity we characterize the classes of reward games where the Myerson allocation scheme and the position allocation scheme are link monotonic. As a by-product we find a characterization of the Myerson value and the position value on the class of reward games using potentials.
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Bibliographic InfoPaper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 1999-06.
Date of creation: 1999
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network; reward game; monotonic allocation scheme;
Other versions of this item:
- C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
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