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Non-cohesive TU-games: Efficiency and Duality

Author

Listed:
  • Fatma Aslan

    (Faculty of Economic and Social Sciences, Budapest University of Technology and Economics, and Quantitative Social and Management Sciences Research Centre, Hungary)

  • Papatya Duman

    (Paderborn University)

  • Walter Trockel

    (Bielefeld University)

Abstract

In this article, we draw attention to some inconsistencies and conceptual chinks in the current literature on coalitional TU-games. We criticize the widespread habit of neglecting the classic problem of coalition-building and defining feasibility, efficiency, and duality for general TU-games with respect to the grand coalition. We redefine these properties using the concept of cohesiveness by versions that are meaningful for all TU-games. Based on conceptual and historical arguments we distinguish between subsets and formed coalitions and between classic TU-games and TU-game extensions. We use the Duality Theorem of Linear Optimization to motivate the use of cohesiveness. In an Appendix, we collect some results illustrating similarities and differences between our duality and the currently widely used *-duality for TU-games.

Suggested Citation

  • Fatma Aslan & Papatya Duman & Walter Trockel, 2020. "Non-cohesive TU-games: Efficiency and Duality," Working Papers CIE 138, Paderborn University, CIE Center for International Economics.
    • Handle: RePEc:pdn:ciepap:138
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    TU-games; duality; c-Core; cohesive games; super-additivity; Pareto efficiency;
    All these keywords.

    JEL classification:

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

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