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Characterization of the Average Tree solution and its kernel

Author

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  • Sylvain Béal

    () (CRESE, Université de Franche-Comté)

  • Eric Rémila

    () (Université de Saint-Etienne, CNRS UMR 5824 GATE Lyon Saint-Etienne)

  • Philippe Solal

    () (Université de Saint-Etienne, CNRS UMR 5824 GATE Lyon Saint-Etienne)

Abstract

In this article, we study cooperative games with limited cooperation possibilities, represented by a tree on the set of agents. Agents in the game can cooperate if they are connected in the tree. We first derive direct-sum decompositions of the space of TU-games on a fixed tree, and two new basis for these spaces of TU-games. We then focus our attention on the Average (rooted)-Tree solution (see Herings, P., van der Laan, G., Talman, D., 2008. The Average Tree Solution for Cycle-free Games. Games and Economic Behavior 62, 77-92). We provide a basis for its kernel and a new axiomatic characterization by using the classical axiom for inessential games, and two new axioms of invariance, namely Invariance with respect to irrelevant coalitions and Weighted addition invariance on bi-partitions.

Suggested Citation

  • Sylvain Béal & Eric Rémila & Philippe Solal, 2014. "Characterization of the Average Tree solution and its kernel," Working Papers 2014-04, CRESE.
  • Handle: RePEc:crb:wpaper:2014-04
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    File URL: http://crese.univ-fcomte.fr/WP-2014-04.pdf
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    References listed on IDEAS

    as
    1. René Brink & P. Herings & Gerard Laan & A. Talman, 2015. "The Average Tree permission value for games with a permission tree," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 58(1), pages 99-123, January.
    2. S. Béal & A. Lardon & E. Rémila & P. Solal, 2012. "The average tree solution for multi-choice forest games," Annals of Operations Research, Springer, vol. 196(1), pages 27-51, July.
    3. Béal, Sylvain & Rémila, Eric & Solal, Philippe, 2010. "Rooted-tree solutions for tree games," European Journal of Operational Research, Elsevier, vol. 203(2), pages 404-408, June.
    4. Koji Yokote, 2015. "Weak addition invariance and axiomatization of the weighted Shapley value," International Journal of Game Theory, Springer;Game Theory Society, vol. 44(2), pages 275-293, May.
    5. Roger B. Myerson, 1977. "Graphs and Cooperation in Games," Mathematics of Operations Research, INFORMS, vol. 2(3), pages 225-229, August.
    6. Herings, P. Jean Jacques & van der Laan, Gerard & Talman, Dolf, 2008. "The average tree solution for cycle-free graph games," Games and Economic Behavior, Elsevier, vol. 62(1), pages 77-92, January.
    7. Evans, Robert A., 1996. "Value, Consistency, and Random Coalition Formation," Games and Economic Behavior, Elsevier, vol. 12(1), pages 68-80, January.
    8. Richard Baron & Sylvain Béal & Eric Rémila & Philippe Solal, 2011. "Average tree solutions and the distribution of Harsanyi dividends," International Journal of Game Theory, Springer;Game Theory Society, vol. 40(2), pages 331-349, May.
    9. Gabrielle Demange, 2004. "On Group Stability in Hierarchies and Networks," Journal of Political Economy, University of Chicago Press, vol. 112(4), pages 754-778, August.
    10. Herings, P.J.J. & van der Laan, G. & Talman, A.J.J. & Yang, Z., 2010. "The average tree solution for cooperative games with communication structure," Games and Economic Behavior, Elsevier, vol. 68(2), pages 626-633, March.
    11. Debasis Mishra & A. Talman, 2010. "A characterization of the average tree solution for tree games," International Journal of Game Theory, Springer;Game Theory Society, vol. 39(1), pages 105-111, March.
    12. René Brink & Ilya Katsev & Gerard Laan, 2011. "Axiomatizations of two types of Shapley values for games on union closed systems," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 47(1), pages 175-188, May.
    13. René van den Brink, 2009. "Comparable Axiomatizations of the Myerson Value, the Restricted Banzhaf Value, Hierarchical Outcomes and the Average Tree Solution for Cycle-Free Graph Restricted Games," Tinbergen Institute Discussion Papers 09-108/1, Tinbergen Institute.
    14. Sylvain Béal & Eric Rémila & Philippe Solal, 2013. "A Decomposition of the Space of TU-games Using Addition and Transfer Invariance," Working Papers 2013-08, CRESE.
    15. Sylvain Béal & Eric Rémila & Philippe Solal, 2014. "Decomposition of the space of TU-games, Strong Transfer Invariance and the Banzhaf value," Working Papers hal-01377929, HAL.
    16. Béal, Sylvain & Rémila, Eric & Solal, Philippe, 2012. "Weighted component fairness for forest games," Mathematical Social Sciences, Elsevier, vol. 64(2), pages 144-151.
    17. Norman L. Kleinberg & Jeffrey H. Weiss, 1985. "Equivalent N -Person Games and the Null Space of the Shapley Value," Mathematics of Operations Research, INFORMS, vol. 10(2), pages 233-243, May.
    18. van den Brink, René, 2012. "Efficiency and collusion neutrality in cooperative games and networks," Games and Economic Behavior, Elsevier, vol. 76(1), pages 344-348.
    19. Mishra, D. & Talman, A.J.J., 2009. "A Characterization of the Average Tree Solution for Cycle-Free Graph Games," Discussion Paper 2009-17, Tilburg University, Center for Economic Research.
    20. 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.
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    Citations

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    Cited by:

    1. Sylvain Béal & Eric Rémila & Philippe Solal, 2015. "Discounted Tree Solutions," Working Papers hal-01377923, HAL.
    2. Sylvain Béal & André Casajus & Frank Huettner & Eric Rémila & Philippe Solal, 2016. "Characterizations of weighted and equal division values," Theory and Decision, Springer, vol. 80(4), pages 649-667, April.

    More about this item

    Keywords

    Average Tree solution; Direct-sum decomposition; Kernel; Weighted addition invariance on bi-partitions; Invariance to irrelevant coalitions.;

    JEL classification:

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

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