IDEAS home Printed from https://ideas.repec.org/p/bge/wpaper/1481.html
   My bibliography  Save this paper

The Tradewise-Function Form for Transferable Utility Games

Author

Listed:
  • Marilda Sotomayor
  • David Pérez-Castrillo

Abstract

We introduce a new cooperative game form called the cooperative game in the tradewise-function form and denote it Γ . In Γ , we consider allocations that encompass the players' payoff and the coalitional structure they form. The set of feasible allocations is restricted to t-feasible allocations, those we can expect to result, at any step of a coalition formation process, from the optimal cooperative behavior of the players. We show that the core of Γ is non-empty and coincides with the set of Pareto optimal allocations of Γ and with the set of t-feasible allocations that cannot be t-extended by any t-feasible allocation. Moreover, the cores of the characteristic-function and the tradewise-function forms coincide when the first is not empty. Hence, when the core in the characteristic-function form is not empty, whether we consider all the feasible allocations or only the t-feasible allocations is irrelevant to the final outcome. However, our theory also provides a prescription, in the same spirit, for games in which the core of the characteristic-function form is empty.

Suggested Citation

  • Marilda Sotomayor & David Pérez-Castrillo, 2025. "The Tradewise-Function Form for Transferable Utility Games," Working Papers 1481, Barcelona School of Economics.
  • Handle: RePEc:bge:wpaper:1481
    as

    Download full text from publisher

    File URL: https://bw.bse.eu/wp-content/uploads/2025/03/1481-1.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Peter Sudhölter & Jos A. M. Potters, 2001. "The semireactive bargaining set of a cooperative game," International Journal of Game Theory, Springer;Game Theory Society, vol. 30(1), pages 117-139.
    2. Sotomayor, Marilda, 2005. "An elementary non-constructive proof of the non-emptiness of the core of the Housing Market of Shapley and Scarf," Mathematical Social Sciences, Elsevier, vol. 50(3), pages 298-303, November.
    3. Talman, Dolf & Yang, Zaifu, 2011. "A model of partnership formation," Journal of Mathematical Economics, Elsevier, vol. 47(2), pages 206-212, March.
    4. SCHMEIDLER, David, 1969. "The nucleolus of a characteristic function game," LIDAM Reprints CORE 44, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    5. Guni Orshan & Peter Sudhölter, 2010. "The positive core of a cooperative game," International Journal of Game Theory, Springer;Game Theory Society, vol. 39(1), pages 113-136, March.
    6. Zhou Lin, 1994. "A New Bargaining Set of an N-Person Game and Endogenous Coalition Formation," Games and Economic Behavior, Elsevier, vol. 6(3), pages 512-526, May.
    7. Camelia Bejan & Juan Gómez, 2009. "Core extensions for non-balanced TU-games," International Journal of Game Theory, Springer;Game Theory Society, vol. 38(1), pages 3-16, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jean Derks & Hans Peters & Peter Sudhölter, 2014. "On extensions of the core and the anticore of transferable utility games," International Journal of Game Theory, Springer;Game Theory Society, vol. 43(1), pages 37-63, February.
    2. Chen, Haoxun, 2017. "Undominated nonnegative excesses and core extensions of transferable utility games," European Journal of Operational Research, Elsevier, vol. 261(1), pages 222-233.
    3. Yang, Yi-You, 2012. "On the accessibility of core-extensions," Games and Economic Behavior, Elsevier, vol. 74(2), pages 687-698.
    4. Camelia Bejan & Juan Gómez, 2012. "Axiomatizing core extensions," International Journal of Game Theory, Springer;Game Theory Society, vol. 41(4), pages 885-898, November.
    5. Thijssen, J.J.J., 2003. "Investment under uncertainty, market evolution and coalition spillovers in a game theoretic perspective," Other publications TiSEM 672073a6-492e-4621-8d4a-0, Tilburg University, School of Economics and Management.
    6. Izquierdo, Josep M. & Rafels, Carles, 2001. "Average Monotonic Cooperative Games," Games and Economic Behavior, Elsevier, vol. 36(2), pages 174-192, August.
    7. Toru Hokari & Yukihiko Funaki & Peter Sudhölter, 2020. "Consistency, anonymity, and the core on the domain of convex games," Review of Economic Design, Springer;Society for Economic Design, vol. 24(3), pages 187-197, December.
    8. Guni Orshan & Peter Sudhölter, 2012. "Nonsymmetric variants of the prekernel and the prenucleolus," International Journal of Game Theory, Springer;Game Theory Society, vol. 41(4), pages 809-828, November.
    9. David Pérez-Castrillo & Marilda Sotomayor, 2023. "Constrained-optimal tradewise-stable outcomes in the one-sided assignment game: a solution concept weaker than the core," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 76(3), pages 963-994, October.
    10. Josep Maria Izquierdo & Carles Rafels, 2018. "The core and the steady bargaining set for convex games," International Journal of Game Theory, Springer;Game Theory Society, vol. 47(1), pages 35-54, March.
    11. Pongou, Roland & Tondji, Jean-Baptiste, 2024. "The reciprocity set," Journal of Mathematical Economics, Elsevier, vol. 112(C).
    12. Josep M. Izquierdo & Carles Rafels, 2010. "On the coincidence between the Shimomuras bargaining sets and the core," Working Papers in Economics 241, Universitat de Barcelona. Espai de Recerca en Economia.
    13. Jingang Zhao, 2008. "The Maximal Payoff and Coalition Formation in Coalitional Games," Working Papers 2008.27, Fondazione Eni Enrico Mattei.
    14. repec:ehu:ikerla:34464 is not listed on IDEAS
    15. Anna Khmelnitskaya & Peter Sudhölter, 2013. "The prenucleolus and the prekernel for games with communication structures," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 78(2), pages 285-299, October.
    16. Funaki, Yukihiko & Núñez, Marina, 2024. "Some advances in cooperative game theory: Indivisibilities, externalities and axiomatic approach," Journal of Mathematical Economics, Elsevier, vol. 115(C).
    17. Yang, Guangjing & Sun, Hao, 2023. "The recursive nucleolus for partition function form games," Journal of Mathematical Economics, Elsevier, vol. 104(C).
    18. Michel Grabisch & Hervé Moulin & José Manuel Zarzuelo, 2024. "Professor Peter Sudhölter (1957–2024)," International Journal of Game Theory, Springer;Game Theory Society, vol. 53(2), pages 289-294, June.
    19. Morelli, Massimo & Montero, Maria, 2003. "The demand bargaining set: general characterization and application to majority games," Games and Economic Behavior, Elsevier, vol. 42(1), pages 137-155, January.
    20. Yan-An Hwang, 2013. "On the core: complement-reduced game and max-reduced game," International Journal of Game Theory, Springer;Game Theory Society, vol. 42(2), pages 339-355, May.
    21. John Kleppe & Hans Reijnierse & Peter Sudhölter, 2016. "Axiomatizations of symmetrically weighted solutions," Annals of Operations Research, Springer, vol. 243(1), pages 37-53, August.

    More about this item

    Keywords

    core; tradewise; Pareto optimality; TU Games;
    All these keywords.

    JEL classification:

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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bge:wpaper:1481. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Bruno Guallar (email available below). General contact details of provider: https://edirc.repec.org/data/bargses.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.