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Sharing the surplus in games with externalities within and across issues

Author

Listed:
  • Effrosyni Diamantoudi
  • Inés Macho-Stadler
  • David Pérez-Castrillo
  • Licun Xue

Abstract

We consider environments in which agents can cooperate on multiple issues and externalities are present both within and across issues. We propose a way to extend (Shapley) values that have been put forward to deal with externalities within issues to games where there are externalities within and across issues. We characterize our proposal through axioms that extend the Shapley axioms to our more general environment.

Suggested Citation

  • Effrosyni Diamantoudi & Inés Macho-Stadler & David Pérez-Castrillo & Licun Xue, 2011. "Sharing the surplus in games with externalities within and across issues," Working Papers 569, Barcelona Graduate School of Economics.
  • Handle: RePEc:bge:wpaper:569
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    References listed on IDEAS

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    4. Dutta, Bhaskar & Ehlers, Lars & Kar, Anirban, 2010. "Externalities, potential, value and consistency," Journal of Economic Theory, Elsevier, vol. 145(6), pages 2380-2411, November.
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    8. Geoffroy de Clippel & Roberto Serrano, 2008. "Marginal Contributions and Externalities in the Value," Econometrica, Econometric Society, vol. 76(6), pages 1413-1436, November.
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    10. McQuillin, Ben, 2009. "The extended and generalized Shapley value: Simultaneous consideration of coalitional externalities and coalitional structure," Journal of Economic Theory, Elsevier, vol. 144(2), pages 696-721, March.
    11. Macho-Stadler, Ines & Perez-Castrillo, David & Wettstein, David, 2006. "Efficient bidding with externalities," Games and Economic Behavior, Elsevier, vol. 57(2), pages 304-320, November.
    12. Heinrich H. Nax, 2014. "A Note on the Core of TU-cooperative Games with Multiple Membership Externalities," Games, MDPI, Open Access Journal, vol. 5(4), pages 1-13, October.
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    Cited by:

    1. Messan Agbaglah, 2017. "Overlapping coalitions, bargaining and networks," Theory and Decision, Springer, vol. 82(3), pages 435-459, March.
    2. Ines Macho-Stadler & David Perez-Castrillo & David Wettstein, 2017. "Extensions Of The Shapley Value For Environments With Externalities," Working Papers 1716, Ben-Gurion University of the Negev, Department of Economics.
    3. Gayer, Gabrielle & Persitz, Dotan, 2016. "Negotiation across multiple issues," Theoretical Economics, Econometric Society, vol. 11(3), September.
    4. Andrea Caggese & Ander Perez, 2017. "Capital Misallocation and Secular Stagnation," Finance and Economics Discussion Series 2017-009, Board of Governors of the Federal Reserve System (U.S.).
    5. Heinrich H. Nax, 2014. "A Note on the Core of TU-cooperative Games with Multiple Membership Externalities," Games, MDPI, Open Access Journal, vol. 5(4), pages 1-13, October.

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    More about this item

    Keywords

    Externalities; cooperative game theory; shapley value; linked issues;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • D62 - Microeconomics - - Welfare Economics - - - Externalities

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