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Share Functions for Cooperative Games with Levels Structure of Cooperation

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  • Mikel Alvarez-Mozos

    (University of Santiago de Compostela)

  • Rene van den Brink

    (VU University Amsterdam)

  • Gerard van der Laan

    (VU University Amsterdam)

  • Oriol Tejada

    (ETH Zuerich)

Abstract

In a standard TU-game it is assumed that every subset of the player set can form a coalition and earn its worth. One of the first models where restrictions in cooperation are considered is the one of games with coalition structure. In such games the player set is partitioned into unions and players can only cooperate within their own union. Owen introduced a value for games with coalition structure under the assumption that also the unions can cooperate among them. Winter extended this value to games with levels structure of cooperation, which consists of a game and a finite sequence of partitions defined on the player set, each of them being coarser than the previous one. A share function for TU-games is a type of solution that assigns to every game a vector whose components add up to one, and thus they can be interpreted as players' shares in the worth to be allocated. Extending the approach to games with coalition structure developed by van den Brink and van der Laan (2005), we introduce a class of share functions for games with levels structure of cooperation by defining, for each player and each level, a standard TU-game. The share given to each player is then defined as the product of her shares in the games at every level. We show several desirable properties and provide axiomatic characterizations of this class of LS-share functions.

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Bibliographic Info

Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 12-052/1.

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Date of creation: 11 May 2012
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Handle: RePEc:dgr:uvatin:20120052

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Related research

Keywords: cooperative game; Shapley value; coalition structure; share functions; levels structure of cooperation;

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  1. Laan, G. van der & Brink, J.R. van den, 1998. "A Banzhaf share function for cooperative games in coalition structure," Discussion Paper 1998-66, Tilburg University, Center for Economic Research.
  2. René van den Brink & Gerard van der Laan, 2001. "A Class of Consistent Share Functions for Games in Coalition Structure," Tinbergen Institute Discussion Papers 01-044/1, Tinbergen Institute.
  3. Sébastien Courtin, 2011. "Power in the European Union: an evaluation according to a priori relations between states," Economics Bulletin, AccessEcon, vol. 31(1), pages 534-545.
  4. Pekec, Aleksandar, 2001. "Meaningful and meaningless solutions for cooperative n-person games," European Journal of Operational Research, Elsevier, vol. 133(3), pages 608-623, September.
  5. René van den Brink & Gerard van der Laan, 1998. "The Normalized Banzhaf Value and the Banzhaf Share Function," Tinbergen Institute Discussion Papers 98-042/1, Tinbergen Institute.
  6. Winter, Eyal, 1989. "A Value for Cooperative Games with Levels Structure of Cooperation," International Journal of Game Theory, Springer, vol. 18(2), pages 227-40.
  7. Albizuri, M.J. & Aurrecoechea, J. & Zarzuelo, J.M., 2006. "Configuration values: Extensions of the coalitional Owen value," Games and Economic Behavior, Elsevier, vol. 57(1), pages 1-17, October.
  8. (*), Gerard van der Laan & RenÊ van den Brink, 1998. "Axiomatizations of the normalized Banzhaf value and the Shapley value," Social Choice and Welfare, Springer, vol. 15(4), pages 567-582.
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