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The restricted core of games on distributive lattices: how to share benefits in a hierarchy

  • Michel Grabisch


    (Axe Economie mathématique et jeux - CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS)

  • Lijue Xie

    (China - chine)

Finding a solution concept is one of the central problems in cooperative game theory, and the notion of core is the most popular solution concept since it is based on some rationality condition. In many real situations, not all possible coalitions can form, so that classical TU-games cannot be used. An interesting case is when possible coalitions are defined through a partial ordering of the players (or hierarchy). Then feasible coalitions correspond to teams of players, that is, one or several players with all their subordinates. In these situations, the core in its usual formulation may be unbounded, making its use difficult in practice. We propose a new notion of core, called the restricted core, which imposes efficiency of the allocation at each level of the hierarchy, is always bounded, and answers the problem of sharing benefits in a hierarchy. We show that the core we defined has properties very close to the classical case, with respect to marginal vectors, the Weber set, and balancedness.

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Paper provided by HAL in its series Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) with number halshs-00583868.

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Date of creation: 2011
Date of revision:
Publication status: Published in Mathematical Methods of Operations Research, Springer Verlag, 2011, 73 (2), pp.189-208. <10.1007/s00186-010-0341-2>
Handle: RePEc:hal:cesptp:halshs-00583868
DOI: 10.1007/s00186-010-0341-2
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  1. Gilles, R.P. & Owen, G. & van den Brink, J.R., 1991. "Games with permission structures : The conjunctive approach," Discussion Paper 1991-14, Tilburg University, Center for Economic Research.
  2. Ambec, Stefan & Sprumont, Yves, 2002. "Sharing a River," Journal of Economic Theory, Elsevier, vol. 107(2), pages 453-462, December.
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  5. Hans Reijnierse & Jean Derks, 1998. "Note On the core of a collection of coalitions," International Journal of Game Theory, Springer, vol. 27(3), pages 451-459.
  6. Ichiishi, Tatsuro, 1981. "Super-modularity: Applications to convex games and to the greedy algorithm for LP," Journal of Economic Theory, Elsevier, vol. 25(2), pages 283-286, October.
  7. Michel Grabisch & Lijue Xie, 2007. "A new approach to the core and Weber set of multichoice games," Mathematical Methods of Operations Research, Springer, vol. 66(3), pages 491-512, December.
  8. Michel Grabisch & Lijue Xie, 2008. "The core of games on distributive lattices : how to share benefits in a hierarchy," Documents de travail du Centre d'Economie de la Sorbonne b08077, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne, revised Sep 2009.
  9. René Brink & Gerard Laan & Valeri Vasil’ev, 2007. "Component efficient solutions in line-graph games with applications," Economic Theory, Springer, vol. 33(2), pages 349-364, November.
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  13. 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.
  14. Michel Grabisch & Fabien Lange, 2007. "Games on lattices, multichoice games and the Shapley value: a new approach," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00178916, HAL.
  15. Michel Grabisch, 2013. "The core of games on ordered structures and graphs," PSE - Labex "OSE-Ouvrir la Science Economique" hal-00803233, HAL.
  16. Derks, Jean J M & Gilles, Robert P, 1995. "Hierarchical Organization Structures and Constraints on Coalition Formation," International Journal of Game Theory, Springer, vol. 24(2), pages 147-63.
  17. Hsiao Chih-Ru & Raghavan T. E. S., 1993. "Shapley Value for Multichoice Cooperative Games, I," Games and Economic Behavior, Elsevier, vol. 5(2), pages 240-256, April.
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