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Allocation rules for fixed and flexible networks: the role of players and their links

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  • Borkotokey, Surajit
  • Sarangi, Sudipta

Abstract

We propose an allocation rule that takes into account the importance of players and their links and characterizes it for a fixed network. Unlike previous rules, our characterization does not require component additivity. Next, we extend it to flexible networks a la Jackson (2005). Finally, we provide a comparison with other fixed (network Myerson and Position value) and flexible network (player and link based) allocation rules through a number of examples.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 38340.

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Date of creation: 02 Dec 2011
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Handle: RePEc:pra:mprapa:38340

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Keywords: Network games; Allocation rules; Cooperative games;

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  1. Jackson, Matthew O., 2005. "Allocation rules for network games," Games and Economic Behavior, Elsevier, vol. 51(1), pages 128-154, April.
  2. Gilles, R.P. & Sarangi, S., 2003. "The Role of Trust in Costly Network Formation," Discussion Paper 2003-53, Tilburg University, Center for Economic Research.
  3. Sgroi, Daniel, 2008. "Social network theory, broadband and the future of the World Wide Web," Telecommunications Policy, Elsevier, vol. 32(1), pages 62-84, February.
  4. Gilles, R.P. & Chakrabarti, S. & Sarangi, S. & Badasyan, N., 2004. "The Role of Middlemen inEfficient and Strongly Pairwise Stable Networks," Discussion Paper 2004-64, Tilburg University, Center for Economic Research.
  5. Kamijo, Yoshio, 2009. "A linear proportional effort allocation rule," Mathematical Social Sciences, Elsevier, vol. 58(3), pages 341-353, November.
  6. Marco Slikker, 2005. "A characterization of the position value," International Journal of Game Theory, Springer, vol. 33(4), pages 505-514, November.
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