Implementing Cooperative Solution Concepts: a Generalized Bidding Approach
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.Download Info
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Paper provided by Centre for Economic Research, Keele University in its series Keele Economics Research Papers with number KERP 2006/06.Length: 22 pages
Date of creation: Apr 2006
Date of revision:
Handle: RePEc:kee:kerpuk:2006/06
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Postal: Department of Economics, University of Keele, Keele, Staffordshire, ST5 5BG - United Kingdom
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Web page: http://www.keele.ac.uk/depts/ec/cer/
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Postal: Centre for Economic Research, Research Institute for Public Policy and Management, Keele University, Staffordshire ST5 5BG - United Kingdom
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Web: http://www.keele.ac.uk/depts/ec/cer/pubs_kerps.htm
Related research
Keywords: Implementation; bidding mechanism; Shapley value; consensus value; equal surplus value.;Other versions of this item:
- Yuan Ju & David Wettstein, 2009. "Implementing cooperative solution concepts: a generalized bidding approach," Economic Theory, Springer, vol. 39(2), pages 307-330, May.
- Ju, Y. & Wettstein, D., 2006. "Implementing Cooperative Solution Concepts: A Generalized Bidding Approach," Discussion Paper 2006-42, Tilburg University, Center for Economic Research.
- C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- D62 - Microeconomics - - Welfare Economics - - - Externalities
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-05-13 (All new papers)
- NEP-UPT-2006-05-13 (Utility Models & Prospect Theory)
References
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Gustavo Bergantiños & María Gómez-Rúa, 2010. "Minimum cost spanning tree problems with groups," Economic Theory, Springer, vol. 43(2), pages 227-262, May.
- Ju, Y. & Borm, P.E.M. & Ruys, P.H.M., 2004.
"The Consensus Value: A New Solution Concept for Cooperative Games,"
Discussion Paper
2004-50, Tilburg University, Center for Economic Research.
- 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.
- 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.
- 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.
- Yuan Ju & Peter Borm, 2006. "A Non-cooperative Approach to the Compensation Rules for Primeval Games," Keele Economics Research Papers KERP 2006/18, Centre for Economic Research, Keele University.
- 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.
- 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.
- Ju, Y. & Borm, P.E.M., 2005. "Externalities and Compensation: Primeval Games and Solutions," Discussion Paper 2005-71, Tilburg University, Center for Economic Research.
- Yuan Ju & Peter Borm, 2005. "Externalities and Compensation:Primeval Games and Solutions," Keele Economics Research Papers KERP 2005/05, Centre for Economic Research, Keele University.
- 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.
- Pérez-Castrillo, David & Quérou, Nicolas, 2012.
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