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Axiomatizations of Two Types of Shapley Values for Games on Union Closed Systems

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Author Info
René van den Brink () (VU University Amsterdam)
Ilya Katsev () (Russian Academy of Sciences)
Gerard van der Laan () (VU University Amsterdam)

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Abstract

A situation in which a finite set of players can obtain certain payoffs by cooperation can be described by a cooperative game with transferable utility, or simply a TU-game. A (single-valued) solution for TU-games assigns a payoff distribution to every TU-game. A well-known solution is the Shapley value. In the literature various models of games with restricted cooperation can be found. So, instead of allowing all subsets of the player set N to form, it is assumed that the set of feasible coalitions is a subset of the power set of N. In this paper we consider such sets of feasible coalitions that are closed under union, i.e. for any two feasible coalitions also their union is feasible. We consider and axiomatize two solutions or rules for these games that generalize the Shapley value: one is obtained as the conjunctive permission value using a corresponding superior graph, the other is defined as the Shapley value of a modified game similar as the Myerson rule for conference structures.

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Publisher Info
Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 09-064/1.

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Date of creation: 17 Jul 2009
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Handle: RePEc:dgr:uvatin:20090064

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Web page: http://www.tinbergen.nl/

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Related research
Keywords: TU-game; restricted cooperation; union closed system; Shapley value; permission value; superior graph; axiomatization;

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

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This page was last updated on 2009-11-26.


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