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Minimum norm solutions for cooperative games
Authors:Klaus Kultti  Hannu Salonen
Affiliation:(1) Department of Economics, University of Helsinki, 00014 Helsinki, Finland;(2) Department of Economics, University of Turku, 20014 Turku, Finland
Abstract:A solution f for cooperative games is a minimum norm solution, if the space of games has a norm such that f(v) minimizes the distance (induced by the norm) between the game v and the set of additive games. We show that each linear solution having the inessential game property is a minimum norm solution. Conversely, if the space of games has a norm, then the minimum norm solution w.r.t. this norm is linear and has the inessential game property. Both claims remain valid also if solutions are required to be efficient. A minimum norm solution, the least square solution, is given an axiomatic characterization.
Keywords:Cooperative games  Solutions  Minimum norm  Banzhaf value
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