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Weighing hierarchical power and active contribution in cooperative games with authorization structure

Author

Listed:
  • Antonio C. Alarcón

    (Universidad de Huelva)

  • José M. Gallardo

    (Universidad de Sevilla)

  • Andrés Jiménez-Losada

    (Universidad de Sevilla)

Abstract

Cooperative games model situations in which a group of players work together to make a profit. Frequently, in cooperative situations there are dependency or hierarchical relationships between the players, which must be taken into account when allocating the common profit obtained by the grand coalition. Multiple structures have been used in the literature to model those relationships, and several values have been proposed, but there is something in common in all of them: if a player can veto the participation of another in any coalition, then both players will receive the same share of the profit derived from the active cooperation of the vetoed player. In other words, actively cooperating and giving permission to cooperate are equally valued. In many situations this is neither fair nor realistic. In this paper we introduce a family of allocation rules for cooperative games with authorization structure, which reward positional power less than active cooperation.

Suggested Citation

  • Antonio C. Alarcón & José M. Gallardo & Andrés Jiménez-Losada, 2025. "Weighing hierarchical power and active contribution in cooperative games with authorization structure," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 47(2), pages 643-666, June.
  • Handle: RePEc:spr:orspec:v:47:y:2025:i:2:d:10.1007_s00291-024-00779-7
    DOI: 10.1007/s00291-024-00779-7
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    References listed on IDEAS

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