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An Extension of a Class of Cost Sharing Methods to the Solutions of the Class of Two-Person Cooperative Games

Author

Listed:
  • Elena Yanovskaya

    (National Research University Higher School of Economics)

Abstract

Two-person games and cost/surplus sharing problems are worth for studying because they are the base for their extending to the classes of such problems with variable population with the help of very powerful consistency properties. In the paper a family of cost-sharing methods for cost sharing problems with two agents [Moulin 2000] is extended to a class of solutions for two-person cooperative games that are larger than both cost-sharing and surplus-sharing problems, since cooperative games have no no restrictions on positivity of costs and surpluses. The tool of the extension is a new invariance axiom -- self covariance -- that can be applied both to cost-sharing methods and to cooperative game solutions. In particular, this axiom replaces the Lower composition axiom not applicable to methods for profit sharing problems

Suggested Citation

  • Elena Yanovskaya, 2016. "An Extension of a Class of Cost Sharing Methods to the Solutions of the Class of Two-Person Cooperative Games," HSE Working papers WP BRP 127/EC/2016, National Research University Higher School of Economics.
    • Handle: RePEc:hig:wpaper:127/ec/2016
    as

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    References listed on IDEAS

    as
    1. Elena B.Yanovskaya, 2014. "Self-Covariant Solutions To Cooperative Games With Transferable Utilities," HSE Working papers WP BRP 85/EC/2014, National Research University Higher School of Economics.
    2. Thomson, William, 2003. "Axiomatic and game-theoretic analysis of bankruptcy and taxation problems: a survey," Mathematical Social Sciences, Elsevier, vol. 45(3), pages 249-297, July.
    3. Dutta, B, 1990. "The Egalitarian Solution and Reduced Game Properties in Convex Games," International Journal of Game Theory, Springer;Game Theory Society, vol. 19(2), pages 153-169.
    4. Moulin, Herve, 2002. "Axiomatic cost and surplus sharing," Handbook of Social Choice and Welfare, in: K. J. Arrow & A. K. Sen & K. Suzumura (ed.), Handbook of Social Choice and Welfare, edition 1, volume 1, chapter 6, pages 289-357, Elsevier.
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    JEL classification:

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

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