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On the restricted cores and the bounded core of games on distributive lattices

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Abstract

We consider TU-games with restricted cooperation, where the set of feasible coalitions is a distributive lattice, hence generated by a partial order on the set of players. In such a situation, the core may be unbounded, and one has to select a bounded part of the core as a solution concept. The restricted core is obtained by imposing equality constraints in the core for sets belonging to so-called normal collections, resulting (if nonempty) in the selection of a bounded face of the core. The bounded core proves to be the union of all bounded faces (restricted cores). The paper aims at investigating in depth the relation between the bounded core and restricted cores, as well as the properties and structures of the restricted cores and normal collections. In particular, it is found that a game is convex if and only if all restricted cores corresponding to the minimal nested normal collections are nonempty. Moreover, in this case the union of these restricted cores already covers the bounded core.

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Paper provided by Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne in its series Documents de travail du Centre d'Economie de la Sorbonne with number 12067.

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Length: 18 pages
Date of creation: Oct 2012
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Handle: RePEc:mse:cesdoc:12067

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Keywords: TU-game; restricted cooperation; distributive lattice; core; extremal rays; faces of the core.;

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  14. Michel Grabisch, 2013. "The core of games on ordered structures and graphs," PSE - Labex "OSE-Ouvrir la Science Economique" hal-00803233, HAL.
  15. Michel Grabisch & Lijue Xie, 2011. "The restricted core of games on distributive lattices: how to share benefits in a hierarchy," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00583868, HAL.
  16. Pulido, Manuel A. & Sanchez-Soriano, Joaquin, 2006. "Characterization of the core in games with restricted cooperation," European Journal of Operational Research, Elsevier, vol. 175(2), pages 860-869, December.
  17. Algaba, A. & Bilbao, J.M. & Brink, J.R. van den & Jiménez-Losada, A., 2000. "Cooperative Games on Antimatroids," Discussion Paper 2000-124, Tilburg University, Center for Economic Research.
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  20. Michel Grabisch & Lijue Xie, 2008. "The core of games on distributive lattices : how to share benefits in a hierarchy," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00344802, HAL.
  21. Faigle, U. & Grabisch, M. & Heyne, M., 2010. "Monge extensions of cooperation and communication structures," European Journal of Operational Research, Elsevier, vol. 206(1), pages 104-110, October.
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