A path scheme for a simple game is composed of a path, i.e., a sequence of coalitions that is formed during the coalition formation process and a scheme, i.e., a payoff vector for each coalition in the path. A path scheme is called population monotonic if a player's payoff does not decrease as the path coalition grows. In this study, we focus on Shapley path schemes of simple games in which for every path coalition the Shapley value of the associated subgame provides the allocation at hand. We show that a simple game allows for population monotonic Shapley path schemes if and only if the game is balanced. Moreover, the Shapley path scheme of a specific path is population monotonic if and only if the first winning coalition that is formed along the path contains every minimal winning coalition. Extensions of these results to other probabilistic values are discussed.
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Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number
113.
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Find related papers by JEL classification: C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Models of Political Processes: Rent-seeking, Elections, Legislatures, and Voting Behavior
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Sergiu Hart, 2006.
"Shapley Value,"
Discussion Paper Series
dp421, Center for Rationality and Interactive Decision Theory, Hebrew University, Jerusalem.
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