On Axiomatizations of the Shapley Value for Assignment Games
AbstractWe consider the problem of axiomatizing the Shapley value on the class of assignment games. We first show that several axiomatizations of the Shapley value on the class of all TU-games do not characterize this solution on the class of assignment games by providing alternative solutions that satisfy these axioms. However, when considering an assignment game as a communication graph game where the game is simply the assignment game and the graph is a corresponding bipartite graph buyers are connected with sellers only, we show that Myerson's component efficiency and fairness axioms do characterize the Shapley value on the class of assignment games. Moreover, these two axioms have a natural interpretation for assignment games. Component efficiency yields submarket efficiency stating that the sum of the payoffs of all players in a submarket equals the worth of that submarket, where a submarket is a set of buyers and sellers such that all buyers in this set hav e zero valuation for the goods offered by the sellers outside the set, and all buyers outside the set have zero valuations for the goods offered by sellers inside the set. Fairness of the graph game solution boils down to valuation fairness stating that only changing the valuation of one particular buyer for the good offered by a particular seller changes the payoffs of this buyer and seller by the same amount.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 12-092/II.
Date of creation: 13 Sep 2012
Date of revision:
Contact details of provider:
Web page: http://www.tinbergen.nl
Assignment game; Shapley value; communication graph game; submarket efficiency; valuation fairness;
Find related papers by JEL classification:
- C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
- C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-09-30 (All new papers)
- NEP-GTH-2012-09-30 (Game Theory)
- NEP-MIC-2012-09-30 (Microeconomics)
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.:
- Chun, Youngsub, 1989. "A new axiomatization of the shapley value," Games and Economic Behavior, Elsevier, vol. 1(2), pages 119-130, June.
- Sergiu Hart, 2006. "Shapley Value," Discussion Paper Series dp421, The Center for the Study of Rationality, Hebrew University, Jerusalem.
- NEYMAN, Abraham, 1988.
"Uniqueness of the Shapley value,"
CORE Discussion Papers
1988013, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Einy, Ezra, 1988. "The shapley value on some lattices of monotonic games," Mathematical Social Sciences, Elsevier, vol. 15(1), pages 1-10, February.
- Chun, Youngsub, 1991. "On the Symmetric and Weighted Shapley Values," International Journal of Game Theory, Springer, vol. 20(2), pages 183-90.
- Hart, Sergiu & Mas-Colell, Andreu, 1989. "Potential, Value, and Consistency," Econometrica, Econometric Society, vol. 57(3), pages 589-614, May.
- Roth, Alvin E, 1977. "The Shapley Value as a von Neumann-Morgenstern Utility," Econometrica, Econometric Society, vol. 45(3), pages 657-64, April.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Antoine Maartens (+31 626 - 160 892)).
If references are entirely missing, you can add them using this form.