CLEANING A RIVER: AN ANALYSIS OF VOLUNTARY JOINT ACTION

Abstract River pollution creates negative externalities to downstream water users. In this paper, we analyze how voluntary joint action of water users can improve pollution abatement when optimal treatment cannot be enforced. We model a transboundary pollution game with a unidirectional pollutant flow. Players are identical except for their location along the river. We find that, surprisingly, the location of coalition members has no impact on coalition stability. Location does, however, affect overall welfare. The more upstream the members of the coalition are, the higher is the overall welfare because the positive externalities of cleaning accrue to a larger number of downstream water users.     

RESTRICTED COALITIONS IN THE MANAGEMENT OF REGIONAL FISHERIES ORGANIZATIONS

ABSTRACT. In this paper, we examine a game theoretic setting in which four countries have established a regional organization for the conservation and management of straddling and highly migratory fish stocks as recommended by the United Nations Agreement. These countries consist of two coastal states and two distant water fishing nations (DWFNs). A characteristic function game approach is applied to describe the sharing of the surplus benefits from cooperation. We are specifically interested in the effect of possible coalition restrictions on these shares. According to our results the distant water fishing nations, by individually refusing to join with the coastal states, can considerably improve their negotiation position if their harvesting costs are relatively high and similar. The results show that the DWFNs may have economic reasons for negotiating as a group against coastal states. However, if the coastal states are clearly more efficient than the DWFNs then coalition restrictions may be prevented by coastal states.     

Common pool resources with support

We examine the role of support for coalition stability in common pool resource games such as fisheries games. Some players may not want to join a coalition that jointly manages a resource. Still, because they benefit from spillovers, they may want to support the coalition with a transfer payment to set incentives for others to join. We find that the impact of support on equilibria of this game is limited to games with three or five players. Recommendations for Resource Managers

• Coalitions may be able to effectively manage common pool resources such as fisheries but such coalitions are often not stable due to free-rider incentives.
• We explore the impact of a transfer scheme that can improve this coalition stability which would lead to larger and more effective coalitions.
• Our results show that this new transfer scheme works only for cases where the number of players is small.

     

On the existence of a cooperative solution for a coalitional game with externalities

This paper analyzes a game in coalitional form that is derived from a simple economy with multilateral externalities. Following Chander and Tulkens (1997) we assume that agents react to a blocking coalition by choosing individual best reply strategies. A non-empty core of this game is established by showing that the game is balanced. The proof relies only on standard convexity assumptions and, therefore, substantially generalizes the results in Chander and Tulkens (1997). Received June 2000/Revised version March 2001     

SHARING THE BENEFITS OF COOPERATION IN HIGH SEAS FISHERIES: A CHARACTERISTIC FUNCTION GAME APPROACH

In the current paper we examine a game-theoretic setting in which three countries have established a regional organization for the conservation and management of straddling and highly migratory fish stocks. A characteristic function game approach is applied to describe the sharing of the surplus benefits from cooperation. We demonstrate that the nucleolus and the Shapley value give more of the benefits to the coalition with substantial bargaining power than does the Nash bargaining scheme. We also compare the results that are obtained by using the nucleolus and the Shapley value as solution concepts. The outcomes from these solution concepts depend on the relative efficiency of the most efficient coalition. Furthermore, the question of fair sharing of the benefits is considered in the context of straddling stocks.     

The core of an economy with multilateral environmental externalities

When environmental externalities are international — i.e. transfrontier — they most often are multilateral and embody public good characteristics. Improving upon inefficient laissez-faire equilibria requires voluntary cooperation for which the game-theoretic core concept provides optimal outcomes that have interesting properties against free riding. To define the core, however, the characteristic function of the game associated with the economy (which specifies the payoff achievable by each possible coalition of players—here, the countries) must also reflect in each case the behavior of the players which are not members of the coalition. This has been for a long time a disputed issue in the theory of the core of economies with externalities. Among the several assumptions that can be made as to this behaviour, a plausible one is defined in this paper, for which it is shown that the core of the game is nonempty. The proof is constructive in the sense that it exhibits a strategy (specifying an explicit coordinated abatement policy and including financial transfers) that has the desired property of nondomination by any proper coalition of countries, given the assumed behavior of the other countries. This strategy is also shown to have an equilibrium interpretation in the economic model.     

Power,Embedded Games,and Coalition Formation

Applications of game theory frequently presume but do not show that social structures contain games. This study shows that multiple games are embedded in strong power structures and that power is exercised because 1) the game of those low in power contains a dilemma whereas 2) the game of those high in power does not. As in previous analyses, we find those low in power play the Prisoner's Dilemma game. New to this analysis is the discovery that those high in power play the Privileged game, a game with no dilemma. Also new is the extension of the analysis to the design of coalitions. That extension shows that, when coalition formation succeeds, it eliminates the dilemma of those low in power by transforming their game from Prisoner's Dilemma to Privileged. By contrast, exactly the same coalition structure does not alter the game played by those high in power. Applying well-known game theoretic solution concepts, we predict that low power coalitions will countervail power, but that coalitions of those high in power will not affect power exercise. Experiments testing this theory investigate 1) coalitions of those high in power, 2) low power coalitions organized against multiple high power positions, and 3) opposed coalitions struggling for power against each other. Results strongly support the theory.     

MODELS FOR COOPERATION AND CONSPIRACY IN FISHERIES: CHANGING THE RULES OF THE GAME

Fisheries regulation is considered necessary to counteract the effects of competitive forces which can lead to a “tragedy of the commons”. Yet management initiatives have often failed because they did not take into account competitive responses of fishing enterprises. In particular, open access fisheries provide strong incentives for the development of excessive harvesting capacity. This in turn leads to harvesting that is concentrated in space and time, with adverse effects on both the resource and markets. A coalition of fishermen, such as a fishermen's cooperative, has interests similar to those of a sole owner, and thus would be expected to produce more efficient behaviour. In practice, however, fishermen's cooperatives seldom persist. Game theory is used to explore relationships between the coalition structure of the industry, economic variables, and regulation. The models are based loosely on a purse seine fishery for herring. The results suggest that the potential to form stable coalitions is affected by changes in price and harvest. Changes in regulation also affect stability of coalitions. When interpreted in the light of historical changes in the herring fishery, these results suggest that industry may not accept regulations which do not permit formation of stable coalitions.     

How do coalitions get built? Evidence from an extensive form coalition game with and without communication

In the laboratory, we investigate a non-cooperative three-person coalition game with externalities and the opportunity to extend existing coalitions. One bargainer, the builder, can propose and build a coalition over two stages. We examine the hypothesis that both absolute and relative payoffs affect the coalition formation process (and outcome). We observe many inefficient two-person final coalitions, and that the distribution of outcomes is sensitive to the constellation of both absolute and relative payoffs. Relative payoffs appear to be applied more myopically than has been observed in bilateral sequential bargaining games or suggested by social preference models. We hypothesize that the prevalence of two-person coalitions stems from builder’s uncertainty about individual acceptance thresholds. In fact, allowing nonbinding communication among the bargainers increases the prevalence of efficient coalitions. The main implication is that efficient coalition building involves strategies for mitigating the strategic uncertainty inherent in building coalitions.     

Games with externalities: games in coalition configuration function form

In this paper we introduce a model of cooperative game with externalities which generalizes games in partition function form by allowing players to take part in more than one coalition. We provide an extension of the Shapley value (1953) to these games, which is a generalization of the Myerson value (1977) for games in partition function form. This value is derived by considering an adaptation of an axiomatic characterization of the Myerson value (1977).     

一种资源投入不确定情形下的合作博弈形式及收益分配策略

首先,将经典合作博弈进行扩展,提出了一类模糊联盟合作博弈的通用形式,涵盖常见三种模糊联盟合作博弈,即多线性扩展博弈、比例模糊博弈与Choquet积分模糊博弈.比例模糊博弈、Choquet积分模糊博弈的Shapley值均可以作为一种特定形式下模糊联盟合作博弈的收益分配策略,但是对于多线性扩展博弈的Shapley值一直关注较少,因此利用经典Shapley值构造出多线性扩展博弈的Shapley值,以此作为一种收益分配策略.最后,通过实例分析了常见三类模糊联盟合作博弈的形式及其对应的分配策略,分析收益最大的模糊联盟合作对策形式及最优分配策略,为不确定情形下的合作问题提供了一定的收益分配依据.     

COALITION FORMATION IN A GLOBAL WARMING GAME: HOW THE DESIGN OF PROTOCOLS AFFECTS THE SUCCESS OF ENVIRONMENTAL TREATY‐MAKING

ABSTRACT. We combine new concepts of noncooperative coalition theory with an integrated assessment model on climate change to analyze the impact of different protocol designs on the success of coalition formation. We analyze the role of “single versus multiple coalitions,”“open versus exclusive membership,”“no, weak and strong consensus about membership” and “no transfers versus transfers.” First, we want to find out whether and how modifications of the standard assumptions affect results that are associated with the widely applied cartel formation game in the noncooperative game theoretic analysis of international environmental agreements. Second, we discuss normative policy conclusions that emerge from the various modifications. Third, we confront our results with evidence on past international environmental treaties and derive an agenda for future research.     

分销供应链中竞争零售商联盟的稳定性

针对由单一供应商和三个相互竞争零售商组成的两层分销供应链系统,在三种不同的博弈框架下,采用合作博弈论中短视的Nash稳定性概念与远视的最大一致集(LCS)概念研究了供应商与不同零售商联盟间的定价博弈,分别讨论了不同类型零售商联盟的稳定性。发现不论是在供应商处于领导地位,还是在零售商处于领导地位的市场中,当竞争强度较弱时,大联盟不是短视零售商联盟的稳定结构,却有可能是远视零售商联盟的稳定结构;当竞争强度较强时,则无论是短视零售商还是远视零售商都以大联盟为稳定结构,但是,在供应商处于领导地位的市场中,远视零售商形成大联盟的阈值较高;在供应商和零售商地位相同的市场中,大联盟则是远视零售商和短视零售商共同的稳定结构。     

在划分系统下集合对策值的结构

A set game, in which the worth of a coalition is expressed by a set instead of areal number, is a new type of cooperative game.A F-restricted set game is a set game restricted by partition system.The main theorems show the structures of IM-value,OIM-value,SCM-value and ICM-value respectively,and the equivalency of IM-value and the OIM-value for monotonicset games restricted by partition system as well.     

Strategically supported cooperation in dynamic games with coalition structures

The problem of strategic stability of long-range cooperative agreements in dynamic games with coalition structures is investigated. Based on imputation distribution procedures, a general theoretical framework of the differential game with a coalition structure is proposed. A few assumptions about the deviation instant for a coalition are made concerning the behavior of a group of many individuals in certain dynamic environments.From these, the time-consistent cooperative agreement can be strategically supported by ε-Nash or strong ε-Nash equilibria. While in games in the extensive form with perfect information, it is somewhat surprising that without the assumptions of deviation instant for a coalition, Nash or strong Nash equilibria can be constructed.     

Minimum cost spanning tree games

We consider the problem of cost allocation among users of a minimum cost spanning tree network. It is formulated as a cooperative game in characteristic function form, referred to as a minimum cost spanning tree (m.c.s.t.) game. We show that the core of a m.c.s.t. game is never empty. In fact, a point in the core can be read directly from any minimum cost spanning tree graph associated with the problem. For m.c.s.t. games with efficient coalition structures we define and construct m.c.s.t. games on the components of the structure. We show that the core and the nucleolus of the original game are the cartesian products of the cores and the nucleoli, respectively, of the induced games on the components of the efficient coalition structure.This paper is a revision of [4].     

The collective value: a new solution for games with coalition structures

In this study, we provide a new solution for cooperative games with coalition structures. The collective value of a player is defined as the sum of the equal division of the pure surplus obtained by his coalition from the coalitional bargaining and of his Shapley value for the internal coalition. The weighted Shapley value applied to a game played by coalitions with coalition-size weights is assigned to each coalition, reflecting the size asymmetries among coalitions. We show that the collective value matches exogenous interpretations of coalition structures and provide an axiomatic foundation of this value. A noncooperative mechanism that implements the collective value is also presented.     

On the core of cost-revenue games: Minimum cost spanning tree games with revenues

In this paper, we analyze cost sharing problems arising from a general service by explicitly taking into account the generated revenues. To this cost-revenue sharing problem, we associate a cooperative game with transferable utility, called cost-revenue game. By considering cooperation among the agents using the general service, the value of a coalition is defined as the maximum net revenues that the coalition may obtain by means of cooperation. As a result, a coalition may profit from not allowing all its members to get the service that generates the revenues. We focus on the study of the core of cost-revenue games. Under the assumption that cooperation among the members of the grand coalition grants the use of the service under consideration to all its members, it is shown that a cost-revenue game has a nonempty core for any vector of revenues if, and only if, the dual game of the cost game has a large core. Using this result, we investigate minimum cost spanning tree games with revenues. We show that if every connection cost can take only two values (low or high cost), then, the corresponding minimum cost spanning tree game with revenues has a nonempty core. Furthermore, we provide an example of a minimum cost spanning tree game with revenues with an empty core where every connection cost can take only one of three values (low, medium, or high cost).     

MEASURING PRODUCTIVITY AND ITS COMPONENTS FOR FISHERIES: THE CASE OF THE ALASKAN POLLOCK FISHERY, 1994–2003

Abstract Traditional productivity measures have been much less prevalent in fisheries economics than other measures of economic and biological performance. It has been increasingly recognized, however, that modeling and measuring fisheries' production relationships is central to understanding and ultimately correcting the repercussions of externalities and poorly designed regulations. We use a transformation function production model to estimate productivity and its components for catcher–processors in the Bering Sea and Aleutian Islands pollock fishery, before and after the introduction of a cooperative system that grants exclusive harvesting privileges and allows quota exchange. We also recognize the roles of externalities from pollock harvesting by incorporating data on climate, bycatch, and fish biomass. We find that productivity has been increasing over time, that many productive contributions and interactions of climate, bycatch, and fishing strategies are statistically significant, and that regulatory changes have had both direct and indirect impacts on catch patterns and productivity.     

On the Structural Stability of Values for Cooperative Games

It is generally assumed that any set of players can form a feasible coalition for classical cooperative games. But, in fact, some players may withdraw from the current game and form a union, if this makes them better paid than proposed. Based on the principle of coalition split, this paper presents an endogenous procedure of coalition formation by levels and bargaining for payoffs simultaneously, where the unions formed in the previous step continue to negotiate with others in the next step as “individuals,” looking for maximum share of surplus by organizing themselves as a partition. The structural stability of the induced payoff configuration is discussed, using two stability criteria of core notion for cooperative games and strong equilibrium notion for noncooperative games.