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A strategic implementation of the sequential equal surplus division rule for digraph cooperative games

Author

Listed:
  • Sylvain Béal

    (CRESE - Centre de REcherches sur les Stratégies Economiques (UR 3190) - UFC - Université de Franche-Comté - UBFC - Université Bourgogne Franche-Comté [COMUE])

  • Eric Rémila

    (GATE Lyon Saint-Étienne - Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne - ENS de Lyon - École normale supérieure de Lyon - Université de Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - UJM - Université Jean Monnet - Saint-Étienne - CNRS - Centre National de la Recherche Scientifique)

  • Philippe Solal

    (GATE Lyon Saint-Étienne - Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne - ENS de Lyon - École normale supérieure de Lyon - Université de Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - UJM - Université Jean Monnet - Saint-Étienne - CNRS - Centre National de la Recherche Scientifique)

Abstract

We provide a strategic implementation of the sequential equal surplus division rule (Béal et al. in Theory Decis 79:251–283, 2015). Precisely, we design a non-cooperative mechanism of which the unique subgame perfect equilibrium payoffs correspond to the sequential equal surplus division outcome of a superadditive rooted tree TU-game. This mechanism borrowed from the bidding mechanism designed by Pérez-Castrillo and Wettstein (J Econ Theory 100:274–294, 2001), but takes into account the direction of the edges connecting any two players in the rooted tree, which reflects some dominance relation between them. Our proofs rely on interesting properties that we provide for a general class of bidding mechanisms.

Suggested Citation

  • Sylvain Béal & Eric Rémila & Philippe Solal, 2017. "A strategic implementation of the sequential equal surplus division rule for digraph cooperative games," Post-Print halshs-01381379, HAL.
    • Handle: RePEc:hal:journl:halshs-01381379
    DOI: 10.1007/s10479-016-2290-5
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    References listed on IDEAS

    as
    1. Sylvain Béal & Amandine Ghintran & Eric Rémila & Philippe Solal, 2015. "The sequential equal surplus division for rooted forest games and an application to sharing a river with bifurcations," Theory and Decision, Springer, vol. 79(2), pages 251-283, September.
    2. Juan Vidal-Puga, 2005. "Implementation of the Levels Structure Value," Annals of Operations Research, Springer, vol. 137(1), pages 191-209, July.
    3. Roger B. Myerson, 1977. "Graphs and Cooperation in Games," Mathematics of Operations Research, INFORMS, vol. 2(3), pages 225-229, August.
    4. Perez-Castrillo, David & Wettstein, David, 2005. "Forming efficient networks," Economics Letters, Elsevier, vol. 87(1), pages 83-87, April.
    5. Perez-Castrillo, David & Wettstein, David, 2001. "Bidding for the Surplus : A Non-cooperative Approach to the Shapley Value," Journal of Economic Theory, Elsevier, vol. 100(2), pages 274-294, October.
    6. Slikker, Marco, 2007. "Bidding for surplus in network allocation problems," Journal of Economic Theory, Elsevier, vol. 137(1), pages 493-511, November.
    7. Herings, P.J.J. & van der Laan, G. & Talman, A.J.J., 2008. "The average tree solution for cycle-free graph games," Other publications TiSEM f243609c-2847-415f-ae52-1, Tilburg University, School of Economics and Management.
    8. Yuan Ju & David Wettstein, 2009. "Implementing cooperative solution concepts: a generalized bidding approach," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 39(2), pages 307-330, May.
    9. René Brink & Yukihiko Funaki & Yuan Ju, 2013. "Reconciling marginalism with egalitarianism: consistency, monotonicity, and implementation of egalitarian Shapley values," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 40(3), pages 693-714, March.
    10. Lehrer, E, 1988. "An Axiomatization of the Banzhaf Value," International Journal of Game Theory, Springer;Game Theory Society, vol. 17(2), pages 89-99.
    11. Haller, Hans, 1994. "Collusion Properties of Values," International Journal of Game Theory, Springer;Game Theory Society, vol. 23(3), pages 261-281.
    12. 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.
    13. Ju, Yuan, 2012. "Reject and renegotiate: The Shapley value in multilateral bargaining," Journal of Mathematical Economics, Elsevier, vol. 48(6), pages 431-436.
    14. 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.
    15. Aadland, David & Kolpin, Van, 1998. "Shared irrigation costs: An empirical and axiomatic analysis," Mathematical Social Sciences, Elsevier, vol. 35(2), pages 203-218, March.
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    Cited by:

    1. Borkotokey, Surajit & Choudhury, Dhrubajit & Kumar, Rajnish & Sarangi, Sudipta, 2020. "Consolidating Marginalism and Egalitarianism: A New Value for Transferable Utility Games," QBS Working Paper Series 2020/12, Queen's University Belfast, Queen's Business School.
    2. Béal, Sylvain & Ferrières, Sylvain & Rémila, Eric & Solal, Philippe, 2018. "Axiomatization of an allocation rule for ordered tree TU-games," Mathematical Social Sciences, Elsevier, vol. 93(C), pages 132-140.
    3. Dhrubajit Choudhury & Surajit Borkotokey & Rajnish Kumar & Sudipta Sarangi, 2021. "The Egalitarian Shapley value: a generalization based on coalition sizes," Annals of Operations Research, Springer, vol. 301(1), pages 55-63, June.
    4. Liu, Jia-Cai & Sheu, Jiuh-Biing & Li, Deng-Feng & Dai, Yong-Wu, 2021. "Collaborative profit allocation schemes for logistics enterprise coalitions with incomplete information," Omega, Elsevier, vol. 101(C).

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    More about this item

    Keywords

    Bidding approach ; ‘Take-it-or-leave-it’ procedure ; Implementation ; Rooted tree ; TU-games ; Sequential equal surplus division;
    All these keywords.

    JEL classification:

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

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