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Link monotonic allocation schemes

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Author Info
Slikker, M. (Tilburg University, Center for Economic Research)

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Abstract

A 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 speci es 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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Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 6.

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Date of creation: 1999
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Handle: RePEc:dgr:kubcen:19996

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

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Dutta, Bhaskar & Mutuswami, Suresh, 1997. "Stable Networks," Journal of Economic Theory, Elsevier, vol. 76(2), pages 322-344, October. [Downloadable!] (restricted)
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  2. Jackson, Matthew O. & Wolinsky, Asher, 1996. "A Strategic Model of Social and Economic Networks," Journal of Economic Theory, Elsevier, vol. 71(1), pages 44-74, October. [Downloadable!] (restricted)
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  3. Sprumont, Yves, 1990. "Population monotonic allocation schemes for cooperative games with transferable utility," Games and Economic Behavior, Elsevier, vol. 2(4), pages 378-394, December. [Downloadable!] (restricted)
  4. Roger B. Myerson, 1976. "Graphs and Cooperation in Games," Discussion Papers 246, Northwestern University, Center for Mathematical Studies in Economics and Management Science. [Downloadable!]
  5. Hart, Sergiu & Mas-Colell, Andreu, 1989. "Potential, Value, and Consistency," Econometrica, Econometric Society, vol. 57(3), pages 589-614, May. [Downloadable!] (restricted)
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Cited by:
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  1. Johnson, C. & Gilles, R.P., 1999. "Spatial social networks," Discussion Paper 87, Tilburg University, Center for Economic Research. [Downloadable!]
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