A Sensitive Flexible Network Approach
This paper takes an axiomatic approach to find rules for allocating the value of a network when the externalities generated across components are identifiable. Two new, and different, allocation rules are defined and characterized in this context. The first one is an extension of the player-based flexible-network allocation rule (Jackson (2005)). The second one follows the flexible network approach from a component-wise point of view, where the notion of network flexibility is adjusted with a flavor of core stability. Furthermore, two other allocation rules are proposed by relaxing the axiom of equal treatment of vital players. These collapse into the player-based flexible-network allocation rule (Jackson (2005)) for zero-normalized value functions with no externalities across components.
|Date of creation:||Mar 2008|
|Date of revision:||Sep 2008|
|Contact details of provider:|| Postal: |
Web page: http://webdeptos.uma.es/THEconomica/malagawpseries/METC.html
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:mal:wpaper:2008-2. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Samuel Danthine)
If references are entirely missing, you can add them using this form.