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Merging and Splitting in Cooperative Games: Some (Im-)Possibility Results

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Author Info

  • Peter Holch Knudsen

    (Department of Economics, University of Copenhagen)

  • Lars Peter Østerdal

    (Department of Economics, University of Copenhagen)

Abstract

Solutions for cooperative games with side-payments can be manipulated by merging a coalition of players into a single player, or, conversely, splitting a player into a number of smaller players. This paper establishes some (im-)possibility results concerning merging- or splitting-proofness of core solutions of balanced and convex games.

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File URL: http://www.econ.ku.dk/english/research/publications/wp/2005/0519.pdf/
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Bibliographic Info

Paper provided by University of Copenhagen. Department of Economics in its series Discussion Papers with number 05-19.

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Length: 13 pages
Date of creation: Oct 2005
Date of revision:
Handle: RePEc:kud:kuiedp:0519

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Keywords: cooperative games; manipulation; Dutta-Ray solution;

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  1. Lehrer, E, 1988. "An Axiomatization of the Banzhaf Value," International Journal of Game Theory, Springer, vol. 17(2), pages 89-99.
  2. Dutta, Bhaskar & Ray, Debraj, 1989. "A Concept of Egalitarianism under Participation Constraints," Econometrica, Econometric Society, vol. 57(3), pages 615-35, May.
  3. Derks, J. & Tijs, S.H., 2000. "On merge properties of the Shapley value," Open Access publications from Tilburg University urn:nbn:nl:ui:12-86382, Tilburg University.
  4. Hougaard, Jens Leth & Østerdal, Lars Peter, 2010. "Monotonicity of social welfare optima," Games and Economic Behavior, Elsevier, vol. 70(2), pages 392-402, November.
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