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On a class of vertices of the core

Author

Listed:
  • Grabisch, Michel

    (Paris School of Economics)

  • Sudhölter, Peter

    (Department of Business and Economics)

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

  • Grabisch, Michel & Sudhölter, Peter, 2016. "On a class of vertices of the core," Discussion Papers on Economics 5/2016, University of Southern Denmark, Department of Economics.
  • Handle: RePEc:hhs:sdueko:2016_005
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    References listed on IDEAS

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    1. repec:hal:pseose:halshs-00950109 is not listed on IDEAS
    2. Michel Grabisch, 2013. "The core of games on ordered structures and graphs," Annals of Operations Research, Springer, vol. 204(1), pages 33-64, April.
    3. 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.
    4. 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.
    5. 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.
    6. 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.
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    12. 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.
    13. 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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    18. Funaki, Y. & Tijs, S.H. & Brânzei, R., 2007. "Leximals, the Lexicore and the Average Lexicographic Value," Other publications TiSEM 405775ae-c634-49c5-9f9c-4, Tilburg University, School of Economics and Management.
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    20. Faigle, U & Kern, W, 1992. "The Shapley Value for Cooperative Games under Precedence Constraints," International Journal of Game Theory, Springer;Game Theory Society, vol. 21(3), pages 249-266.
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    More about this item

    Keywords

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

    JEL classification:

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

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