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Some game-theoretic grounds for meeting people half-way

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  • Gadea-Blanco, Pedro
  • Giménez-Gómez, José Manuel
  • Marco-Gil, María del Carmen

Abstract

It is well known that, in distributions problems, fairness rarely leads to a single viewpoint (see, for instance, Young (1994)). In this context, this paper provides interesting bases that support the simple and commonly observed behavior of reaching intermediate agreements when two prominent distribution proposals highlight a discrepancy in sharing resources. Specifi cally, we formalize such a conflicting situation by associating it with a `natural' cooperative game, called bifocal distribution game, to show that both the Nucleolus (Schmeidler (1969)) and the Shapley value (Shapley (1953a)) agree on recommending the average of the two focal proposals. Furthermore, we analyze the interpretation of the previous result by means of axiomatic arguments. Keywords: Distribution problems, Cooperative games, Axiomatic analysis, Nucleolus, Shapley value. JEL Classi fication Numbers: C71, D63, D71.

Suggested Citation

  • Gadea-Blanco, Pedro & Giménez-Gómez, José Manuel & Marco-Gil, María del Carmen, 2013. "Some game-theoretic grounds for meeting people half-way," Working Papers 2072/220217, Universitat Rovira i Virgili, Department of Economics.
    • Handle: RePEc:urv:wpaper:2072/220217
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    13. José M. Jiménez Gómez & María del Carmen Marco Gil & Pedro Gadea Blanco, 2010. "Some game-theoretic grounds for meeting people half-way," Working Papers. Serie AD 2010-04, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
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    Cited by:

    1. José M. Jiménez Gómez & María del Carmen Marco Gil & Pedro Gadea Blanco, 2010. "Some game-theoretic grounds for meeting people half-way," Working Papers. Serie AD 2010-04, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    2. José-Manuel Giménez-Gómez, 2014. "A Way to Play Claims Problems," Group Decision and Negotiation, Springer, vol. 23(3), pages 617-627, May.
    3. José Manuel, Giménez-Gómez & Antonio, Osorio & Josep Enric, Peris, 2014. "Compromise Solutions for Bankruptcy Situations: A Note," QM&ET Working Papers 14-2, University of Alicante, D. Quantitative Methods and Economic Theory.
    4. Pedro Gadea-Blanco & José-Manuel Giménez-Gómez & M. Carmen Marco-Gil, 2016. "Compromising in bifocal distribution games: the average value," Theory and Decision, Springer, vol. 81(3), pages 449-465, September.

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    More about this item

    Keywords

    Jocs cooperatius; Economia del benestar; Elecció social; 33 - Economia;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations

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