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Average tree solutions and the distribution of Harsanyi dividends

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Author Info
Béal, Sylvain
Rémila, Eric
Solal, Philippe

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Abstract

We consider communication situations games being the combination of a TU-game and a communication graph. We study the average tree (AT) solutions introduced by Herings \sl et al. [9] and [10]. The AT solutions are defined with respect to a set, say T, of rooted spanning trees of the communication graph. We characterize these solutions by efficiency, linearity and an axiom of T-hierarchy. Then we prove the following results. Firstly, the AT solution with respect to T is a Harsanyi solution if and only if T is a subset of the set of trees introduced in [10]. Secondly, the latter set is constructed by the classical DFS algorithm and the associated AT solution coincides with the Shapley value when the communication graph is complete. Thirdly, the AT solution with respect to trees constructed by the other classical algorithm BFS yields the equal surplus division when the communication graph is complete.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 17909.

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Date of creation: 04 Sep 2009
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Handle: RePEc:pra:mprapa:17909

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Related research
Keywords: Communication situations ; average tree solution ; Harsanyi solutions ; DFS ; BFS} ; Shapley value ; equal surplus division;

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Find related papers by JEL classification:
C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games

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  1. Mishra, D. & Talman, A.J.J., 2009. "A Characterization of the Average Tree Solution for Cycle-Free Graph Games," Discussion Paper 2009-17, Tilburg University, Center for Economic Research. [Downloadable!]
  2. Gabrielle Demange, 2004. "On Group Stability in Hierarchies and Networks," Journal of Political Economy, University of Chicago Press, vol. 112(4), pages 754-778, August.
  3. Herings, P. Jean Jacques & van der Laan, Gerard & Talman, Dolf, 2008. "The average tree solution for cycle-free graph games," Games and Economic Behavior, Elsevier, vol. 62(1), pages 77-92, January. [Downloadable!] (restricted)
  4. Gilles, Robert P & Owen, Guillermo & van den Brink, Rene, 1992. "Games with Permission Structures: The Conjunctive Approach," International Journal of Game Theory, Springer, vol. 20(3), pages 277-93.
  5. Faigle, U & Kern, W, 1992. "The Shapley Value for Cooperative Games under Precedence Constraints," International Journal of Game Theory, Springer, vol. 21(3), pages 249-66.
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(explanations, 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.)

  1. Béal, Sylvain & Rémila, Eric & Solal, Philippe, 2009. "Weighted Component Fairness for Forest Games," MPRA Paper 17455, University Library of Munich, Germany. [Downloadable!]
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