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Allocation Rules for Network Games


  • Matthew O. Jackson

    (California Institute of Technology)


Previous allocation rules for network games, such as the Myerson Value, implicitly or explicitly take the network structure as fixed. In many situations, however, the network structure can be altered by players. This means that the value of alternative network structures (not just sub-networks) can and should influence the allocation of value among players on any given network structure. I present a family of allocation rules that incorporate information about alternative network structures when allocating value.

Suggested Citation

  • Matthew O. Jackson, 2003. "Allocation Rules for Network Games," Game Theory and Information 0303010, EconWPA.
  • Handle: RePEc:wpa:wuwpga:0303010
    Note: Type of Document - ; figures: included

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    References listed on IDEAS

    1. Navarro, Noemí & Perea, Andrés, 2001. "Bargaining in networks and the myerson value," UC3M Working papers. Economics we016121, Universidad Carlos III de Madrid. Departamento de Economía.
    2. Marco Slikker, 2005. "A characterization of the position value," International Journal of Game Theory, Springer;Game Theory Society, vol. 33(4), pages 505-514, November.
    3. Sergio Currarini & Massimo Morelli, 2000. "original papers : Network formation with sequential demands," Review of Economic Design, Springer;Society for Economic Design, vol. 5(3), pages 229-249.
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    6. Jackson, Matthew O. & Wolinsky, Asher, 1996. "A Strategic Model of Social and Economic Networks," Journal of Economic Theory, Elsevier, vol. 71(1), pages 44-74, October.
    7. Peleg, B, 1986. "On the Reduced Game Property and Its Converse," International Journal of Game Theory, Springer;Game Theory Society, vol. 15(3), pages 187-200.
    8. 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.
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    10. Qin, Cheng-Zhong, 1996. "Endogenous Formation of Cooperation Structures," Journal of Economic Theory, Elsevier, vol. 69(1), pages 218-226, April.
    11. (*), Anne van den Nouweland & Marco Slikker, 2000. "original papers : Network formation models with costs for establishing links," Review of Economic Design, Springer;Society for Economic Design, vol. 5(3), pages 333-362.
    12. Slikker, M., 2000. "Decision making and cooperation restrictions," Other publications TiSEM 61eead41-85c7-4ded-81c4-e, Tilburg University, School of Economics and Management.
    13. Roger B. Myerson, 1976. "Graphs and Cooperation in Games," Discussion Papers 246, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
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    More about this item


    networks; network games; allocation rules;

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • A14 - General Economics and Teaching - - General Economics - - - Sociology of Economics

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