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The Banzhaf Value in the Presence of Externalities

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Abstract

We propose two generalizations of the Banzhaf value for partition function form games. In both cases, our approach is based on probability distributions over the set of possible coalition structures that may arise for any given set of agents. First, we introduce a family of values, one for each collection of the latter probability distributions, defined as the Banzhaf value of an expected coalitional game. Then, we provide two characterization results for this new family of values within the framework of all partition function games. Both results rely on a property of neutrality with respect to am algamation of players. Second, as this collusion transformation fails to be meanin gful for simple games in partition function form, we propose another generalization of the Banzhaf value which also builds on probability distributions of the above type. This latter family is characterized by means of a neutrality property which uses an amalgamation transformation of players for which simple games are close

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  • Mikel Álvarez-Mozos & Oriol Tejada Pinyol, 2014. "The Banzhaf Value in the Presence of Externalities," UB School of Economics Working Papers 2014/302, University of Barcelona School of Economics.
    • Handle: RePEc:ewp:wpaper:302web
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    16. Macho-Stadler, Ines & Perez-Castrillo, David & Wettstein, David, 2007. "Sharing the surplus: An extension of the Shapley value for environments with externalities," Journal of Economic Theory, Elsevier, vol. 135(1), pages 339-356, July.
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    1. J. M. Alonso-Meijide & M. Álvarez-Mozos & M. G. Fiestras-Janeiro, 2017. "Power Indices and Minimal Winning Coalitions for Simple Games in Partition Function Form," Group Decision and Negotiation, Springer, vol. 26(6), pages 1231-1245, November.
    2. László Á. Kóczy, 2018. "Partition Function Form Games," Theory and Decision Library C, Springer, number 978-3-319-69841-0, March.
    3. José María Alonso-Meijide & Mikel Álvarez-Mozos & María Gloria Fiestras-Janeiro, 2015. "Power Indices and Minimal Winning Coalitions in Simple Games with Externalities Abstract: We propose a generalization of simple games to situations with coalitional externalities. The main novelty of ," UB School of Economics Working Papers 2015/328, University of Barcelona School of Economics.
    4. G. Arévalo-Iglesias & M. Álvarez-Mozos, 2020. "Power distribution in the Basque Parliament using games with externalities," Theory and Decision, Springer, vol. 89(2), pages 157-178, September.

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    More about this item

    Keywords

    Banzhaf value; Externalities; Games in partition function form; Simplegames.;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games

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