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On a class of vertices of the core

Author

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  • Michel Grabisch

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

  • Peter Sudhölter

    (COHERE - Center of Health Economics Research - Syddansk Universitet Denmark - Department of Business and Economics - SDU - University of Southern Denmark)

Abstract

It is known that for supermodular TU-games, the vertices of the core are the marginal vectors, and this result remains true for games where the set of feasible coalitions is a distributive lattice. Such games are induced by a hierarchy (partial order) on players. We propose a larger class of vertices for games on distributive lattices, called min-max vertices, obtained by minimizing or maximizing in a given order the coordinates of a core element. We give a simple formula which does not need to solve an optimization problem to compute these vertices, valid for connected hierarchies and for the general case under some restrictions. We find under which conditions two different orders induce the same vertex for every game, and show that there exist balanced games whose core has vertices which are not min-max vertices if and only if n > 4.

Suggested Citation

  • Michel Grabisch & Peter Sudhölter, 2018. "On a class of vertices of the core," Post-Print hal-02043275, HAL.
  • Handle: RePEc:hal:journl:hal-02043275
    DOI: 10.1016/j.geb.2017.09.001
    Note: View the original document on HAL open archive server: https://hal.science/hal-02043275
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    References listed on IDEAS

    as
    1. Michel Grabisch, 2013. "The core of games on ordered structures and graphs," Annals of Operations Research, Springer, vol. 204(1), pages 33-64, April.
    2. Michel Grabisch & Peter Sudhölter, 2012. "The bounded core for games with precedence constraints," Annals of Operations Research, Springer, vol. 201(1), pages 251-264, December.
    3. Marina Núñez & Carles Rafels, 1998. "On extreme points of the core and reduced games," Annals of Operations Research, Springer, vol. 84(0), pages 121-133, December.
    4. Josep Izquierdo & Marina Núñez & Carles Rafels, 2007. "A simple procedure to obtain the extreme core allocations of an assignment market," International Journal of Game Theory, Springer;Game Theory Society, vol. 36(1), pages 17-26, September.
    5. Derks, Jean J M & Gilles, Robert P, 1995. "Hierarchical Organization Structures and Constraints on Coalition Formation," International Journal of Game Theory, Springer;Game Theory Society, vol. 24(2), pages 147-163.
    6. Michel Grabisch & Peter Sudhölter, 2016. "Characterizations of solutions for games with precedence constraints," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01297600, HAL.
    7. AUMANN, Robert J. & DREZE, Jacques H., 1974. "Cooperative games with coalition structures," LIDAM Reprints CORE 217, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    8. Grabisch, Michel & Sudhölter, Peter, 2014. "On the restricted cores and the bounded core of games on distributive lattices," European Journal of Operational Research, Elsevier, vol. 235(3), pages 709-717.
    9. Marina Núñez & Tamás Solymosi, 2017. "Lexicographic allocations and extreme core payoffs: the case of assignment games," Annals of Operations Research, Springer, vol. 254(1), pages 211-234, July.
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    12. Nunez, Marina & Rafels, Carles, 2003. "Characterization of the extreme core allocations of the assignment game," Games and Economic Behavior, Elsevier, vol. 44(2), pages 311-331, August.
    13. Tijs, S.H., 2005. "The First Steps with Alexia, the Average Lexicographic Value," Discussion Paper 2005-123, Tilburg University, Center for Economic Research.
    14. Tijs, S.H., 2005. "The First Steps with Alexia, the Average Lexicographic Value," Other publications TiSEM 0b4f9565-59f7-477f-b8f8-9, Tilburg University, School of Economics and Management.
    15. Tijs, Stef & Borm, Peter & Lohmann, Edwin & Quant, Marieke, 2011. "An average lexicographic value for cooperative games," European Journal of Operational Research, Elsevier, vol. 213(1), pages 210-220, August.
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    More about this item

    Keywords

    TU games; vertex; core; game with precedence constraints; restricted cooperation;
    All these keywords.

    JEL classification:

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

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