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The Restricted Core for Totally Positive Games with Ordered Players

Author

Listed:
  • René van den Brink

    (VU University Amsterdam)

  • Gerard van der Laan

    (VU University Amsterdam)

  • Valeri Vasil'ev

    (Sobolev Institute of Mathematics, Russia)

Abstract

Recently, applications of cooperative game theory to economic allocation problems have gained popularity. In many such allocation problems, such as river games, queueing games and auction games, the game is totally positive (i.e., all dividends are nonnegative), and there is some hierarchical ordering of the players. In this paper we introduce the 'Restricted Core' for such 'games with ordered players' which is based on the distribution of 'dividends' taking into account the hierarchical ordering of the players. For totally positive games this solution is always contained in the 'Core', and contains the well-known 'Shapley value' (being the single-valued solution distributing the dividends equally among the players in the corresponding coalitions). For special orderings it equals the Core, respectively Shapley value. We provide an axiomatization and apply this solution to river games.

Suggested Citation

  • René van den Brink & Gerard van der Laan & Valeri Vasil'ev, 0000. "The Restricted Core for Totally Positive Games with Ordered Players," Tinbergen Institute Discussion Papers 09-038/1, Tinbergen Institute.
  • Handle: RePEc:tin:wpaper:20090038
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    References listed on IDEAS

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    More about this item

    Keywords

    Totally positive TU-game; Harsanyi dividends; Core; Shapley value; Harsanyi set; Selectope; Digraph; River game;
    All these keywords.

    JEL classification:

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

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