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Fairness and fairness for neighbors: the difference between the Myerson value and component-wise egalitarian solutions

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  • Béal, Sylvain
  • Rémila, Eric
  • Solal, Philippe

Abstract

We replace the axiom of fairness used in the characterization of the Myerson value (Myerson, 1977) by fairness for neighbors in order to characterize the component-wise egalitarian solution. When a link is broken, fairness states the two players incident to the link should be affected similarly while fairness for neighbors states that a player incident to the link and any of his other neighbors should be affected similarly. Fairness for neighbors is also used to characterize the component-wise egalitarian surplus solution and a two-step egalitarian solution. These results highlight that egalitarian and marginalistic allocation rules can be obtained by applying the same equal gain/loss property to different types of players.

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File URL: http://mpra.ub.uni-muenchen.de/36857/
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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 36857.

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Date of creation: 22 Feb 2012
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Handle: RePEc:pra:mprapa:36857

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Keywords: Myerson value; component-wise egalitarian solutions; fairness; fairness for neighbors; two-step value;

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References

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  1. van den Brink, René & Khmelnitskaya, Anna & van der Laan, Gerard, 2012. "An efficient and fair solution for communication graph games," Economics Letters, Elsevier, vol. 117(3), pages 786-789.
  2. Emilio Calvo & Maria Esther Gutierrez, 2010. "Solidarity in games with a coalition structure," Discussion Papers in Economic Behaviour 0810, University of Valencia, ERI-CES.
  3. Slikker, Marco, 2007. "Bidding for surplus in network allocation problems," Journal of Economic Theory, Elsevier, vol. 137(1), pages 493-511, November.
  4. van den Brink, Rene, 2007. "Null or nullifying players: The difference between the Shapley value and equal division solutions," Journal of Economic Theory, Elsevier, vol. 136(1), pages 767-775, September.
  5. repec:dgr:uvatin:2011052 is not listed on IDEAS
  6. Hart, Sergiu & Mas-Colell, Andreu, 1989. "Potential, Value, and Consistency," Econometrica, Econometric Society, vol. 57(3), pages 589-614, May.
  7. Yoshio Kamijo, 2009. "A Two-Step Shapley Value For Cooperative Games With Coalition Structures," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 11(02), pages 207-214.
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Cited by:
  1. van den Brink, René & Khmelnitskaya, Anna & van der Laan, Gerard, 2012. "An efficient and fair solution for communication graph games," Economics Letters, Elsevier, vol. 117(3), pages 786-789.
  2. Casajus, André & Huettner, Frank, 2014. "Null, nullifying, or dummifying players: The difference between the Shapley value, the equal division value, and the equal surplus division value," Economics Letters, Elsevier, vol. 122(2), pages 167-169.

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