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Weighted allocation rules for standard fixed tree games
Authors:Endre?Bj?rndal  Email author" target="_blank">Maurice?KosterEmail author  Stef?Tijs
Institution:(1) Institute of Finance and Management Science, Norwegian School of Economics and Business Administration, Bergen, Norway;(2) Faculty of Economics and Econometrics, Department of Quantitative Economics, University of Amsterdam, Amsterdam, The Netherlands;(3) CentER and Department of Econometrics and Operations Research, Tilburg University, The Netherlands
Abstract:In this paper we consider standard fixed tree games, for which each vertex unequal to the root is inhabited by exactly one player. We present two weighted allocation rules, the weighted down-home allocation and the weighted neighbour-home allocation, both inspired by the painting story in Maschler et al. (1995) . We show, in a constructive way, that the core equals both the set of weighted down-home allocations and the set of weighted neighbour allocations. Since every weighted down-home allocation specifies a weighted Shapley value (Kalai and Samet (1988)) in a natural way, and vice versa, our results provide an alternative proof of the fact that the core of a standard fixed tree game equals the set of weighted Shapley values. The class of weighted neighbour allocations is a generalization of the nucleolus, in the sense that the latter is in this class as the special member where players have all equal weights.
Keywords:Cooperative games  Tree games  Core  Weighted Shapley value  Nucleolus
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