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Implementing Cooperative Solution Concepts: A Generalized Bidding Approach

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  • Ju, Y.
  • Wettstein, D.

    (Tilburg University, Center for Economic Research)

Abstract

This paper provides a framework for implementing and comparing several solution concepts for transferable utility cooperative games.We construct bidding mechanisms where players bid for the role of the proposer.The mechanisms differ in the power awarded to the proposer.The Shapley, consensus and equal surplus values are implemented in subgame perfect equilibrium outcomes as power shifts away from the proposer to the rest of the players.Moreover, an alternative informational structure where these solution concepts can be implemented without imposing any conditions of the transferable utility game is discussed as well.

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Bibliographic Info

Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2006-42.

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Date of creation: 2006
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Handle: RePEc:dgr:kubcen:200642

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Web page: http://center.uvt.nl

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Keywords: implementation; bidding mechanism; Shapley value; consensus value; equal surplus value;

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References

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  1. Ju, Y. & Borm, P.E.M. & Ruys, P.H.M., 2007. "The consensus value: A new solution concept for cooperative games," Open Access publications from Tilburg University urn:nbn:nl:ui:12-195202, Tilburg University.
  2. Dagan, N. & Serrano, R. & Volij, O., 1994. "A Non-Cooperative View of Consistent Bankruptcy Rules," Discussion Paper 1994-11, Tilburg University, Center for Economic Research.
  3. Juan Vidal-Puga, 2003. "Bargaining with commitments," Game Theory and Information 0306002, EconWPA.
  4. Ju, Yuan & Borm, Peter, 2008. "Externalities and compensation: Primeval games and solutions," Journal of Mathematical Economics, Elsevier, vol. 44(3-4), pages 367-382, February.
  5. Ju, Y., 2004. "The Consensus Value for Games in Partition Function Form," Discussion Paper 2004-60, Tilburg University, Center for Economic Research.
  6. Eric Maskin & John Moore, 1999. "Implementation and Renegotiation," Harvard Institute of Economic Research Working Papers 1863, Harvard - Institute of Economic Research.
  7. Perez-Castrillo, David & Wettstein, David, 2001. "Bidding for the Surplus : A Non-cooperative Approach to the Shapley Value," Journal of Economic Theory, Elsevier, vol. 100(2), pages 274-294, October.
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Citations

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Cited by:
  1. Yuan Ju & Peter Borm & Pieter Ruys, 2007. "The consensus value: a new solution concept for cooperative games," Social Choice and Welfare, Springer, vol. 28(4), pages 685-703, June.
  2. Pérez-Castrillo, David & Quérou, Nicolas, 2012. "Smooth multibidding mechanisms," Games and Economic Behavior, Elsevier, vol. 76(2), pages 420-438.
  3. René Brink & Yukihiko Funaki & Yuan Ju, 2013. "Reconciling marginalism with egalitarianism: consistency, monotonicity, and implementation of egalitarian Shapley values," Social Choice and Welfare, Springer, vol. 40(3), pages 693-714, March.
  4. Toyotaka Sakai, 2012. "Fair waste pricing: an axiomatic analysis to the NIMBY problem," Economic Theory, Springer, vol. 50(2), pages 499-521, June.
  5. Ju, Y. & Borm, P.E.M., 2008. "Externalities and compensation: Primeval games and solutions," Open Access publications from Tilburg University urn:nbn:nl:ui:12-303498, Tilburg University.
  6. Ju, Y. & Borm, P.E.M., 2006. "A Non-cooperative Approach to the Compensation Rules for Primeval Games," Discussion Paper 2006-97, Tilburg University, Center for Economic Research.
  7. René van den Brink & Yukihiko Funaki & Yuan Ju, 2007. "Consistency, Monotonicity and Implementation of Egalitarian Shapley Values," Tinbergen Institute Discussion Papers 07-062/1, Tinbergen Institute.
  8. Rene van den Brink & Youngsub Chun & Yuan Ju, 2014. "Auctioning and Selling Positions: A Non-cooperative Approach to Queuing Conflicts," Tinbergen Institute Discussion Papers 14-016/II, Tinbergen Institute.
  9. Gustavo Bergantiños & María Gómez-Rúa, 2010. "Minimum cost spanning tree problems with groups," Economic Theory, Springer, vol. 43(2), pages 227-262, May.
  10. Ju, Yuan, 2012. "Reject and renegotiate: The Shapley value in multilateral bargaining," Journal of Mathematical Economics, Elsevier, vol. 48(6), pages 431-436.
  11. René van den Brink & Yukihiko Funaki & Yuan Ju, 2007. "Consistency, Monotonicity and Implementation of Egalitarian Shapley Values," Tinbergen Institute Discussion Papers 07-062/1, Tinbergen Institute.
  12. Emilio Calvo & Esther Gutiérrez-López, 2014. "A strategic approach for the discounted Shapley values," Discussion Papers in Economic Behaviour 0414, University of Valencia, ERI-CES.
  13. Rene van den Brink & Gerard van der Laan & Nigel Moes, 2012. "A Strategic Implementation of the Average Tree Solution for Cycle-Free Graph Games," Tinbergen Institute Discussion Papers 12-050/1, Tinbergen Institute.
  14. Rene van den Brink & Yukihiko Funaki, 2010. "Axiomatization and Implementation of Discounted Shapley Values," Tinbergen Institute Discussion Papers 10-065/1, Tinbergen Institute.
  15. Rene van den Brink & Gerard van der Laan & Nigel Moes, 2012. "A Strategic Implementation of the Average Tree Solution for Cycle-Free Graph Games," Tinbergen Institute Discussion Papers 12-050/1, Tinbergen Institute.

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