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A strategic implementation of the Average Tree solution for cycle-free graph games

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  • van den Brink, René
  • van der Laan, Gerard
  • Moes, Nigel

Abstract

In this note we provide a strategic implementation of the Average Tree solution for zero-monotonic cycle-free graph games. That is, we propose a non-cooperative mechanism of which the unique subgame perfect equilibrium payoffs correspond to the average hierarchical outcome of the game. This mechanism takes into account that a player is only able to communicate with other players (i.e., to make proposals about a division of the surplus of cooperation) when they are connected in the graph.

Suggested Citation

  • van den Brink, René & van der Laan, Gerard & Moes, Nigel, 2013. "A strategic implementation of the Average Tree solution for cycle-free graph games," Journal of Economic Theory, Elsevier, vol. 148(6), pages 2737-2748.
  • Handle: RePEc:eee:jetheo:v:148:y:2013:i:6:p:2737-2748
    DOI: 10.1016/j.jet.2013.07.018
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    Cited by:

    1. repec:spr:annopr:v:253:y:2017:i:1:d:10.1007_s10479-016-2290-5 is not listed on IDEAS
    2. Sylvain Béal & Eric Rémila & Philippe Solal, 2017. "A strategic implementation of the sequential equal surplus division rule for digraph cooperative games," Annals of Operations Research, Springer, vol. 253(1), pages 43-59, June.
    3. Béal, Sylvain & Rémila, Eric & Solal, Philippe, 2015. "Characterization of the Average Tree solution and its kernel," Journal of Mathematical Economics, Elsevier, vol. 60(C), pages 159-165.
    4. Philippe Solal & Sylvain Béal & Sylvain Ferrières & Eric Rémila, 2017. "Axiomatic and bargaining foundation of an allocation rule for ordered tree TU-games," Post-Print halshs-01644811, HAL.

    More about this item

    Keywords

    Implementation; Cycle-free graph game; Hierarchical outcome; Average Tree solution; Weighted hierarchical outcome;

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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