A Simple Bargaining Procedure for the Myerson Value
We consider situations where the cooperation and negotiation possibilities between pairs of agents are given by an undirected graph. Every connected component of agents has a value, which is the total surplus the agents can generate by working together. We present a simple, sequential, bilateral bargaining procedure, in which at every stage the two agents in a link (i, j) bargain about their share from cooperation in the connected component they are part of. We show that, if the marginal value of a link is increasing in the number of links in the connected component it belongs to, then this procedure yields exactly the Myerson value payoff (Myerson, 1977) for every player.
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- 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.
- David Pérez-Castrillo & David Wettstein, . "Bidding For The Surplus: A Non-Cooperative Approach To The Shapley Value," UFAE and IAE Working Papers 461.00, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- van den Nouweland, C.G.A.M. & Borm, P.E.M., 1991.
"On the convexity of communication games,"
Other publications TiSEM
e754cb6a-f695-4099-bfbf-c, Tilburg University, School of Economics and Management.
- Vidal-Puga, Juan & Bergantinos, Gustavo, 2003. "An implementation of the Owen value," Games and Economic Behavior, Elsevier, vol. 44(2), pages 412-427, August.
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