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An Ordinal Shapley Value for Economic Environments (Revised Version)

Author

Listed:
  • David Perez-Castrillo

    (Universitat Autonoma de Barcelona)

  • David Wettstein

    (BGU)

Abstract
We propose a new solution concept to address the problem of sharing a surplus among the agents generating it. The problem is formulated in the preferences-endowments space. The solution is defined recursively, incorporating notions of consistency and fairness and relying on properties satisfied by the Shapley value for Transferable Utility (TU) games. We show a solution exists, and call it the Ordinal Shapley value (OSV ). We characterize the OSV using the notion of coalitional dividends, and furthermore show it is monotone and anonymous. Finally, similarly to the weighted Shapely value for TU games, we construct a weighted OSV as well.

Suggested Citation

  • David Perez-Castrillo & David Wettstein, 2005. "An Ordinal Shapley Value for Economic Environments (Revised Version)," Working Papers 0502, Ben-Gurion University of the Negev, Department of Economics.
    • Handle: RePEc:bgu:wpaper:0502
    as

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    File URL: https://in.bgu.ac.il/en/humsos/Econ/Workingpapers/0502.pdf
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    References listed on IDEAS

    as
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    Cited by:

    1. Gustavo Bergantiños & Juan Vidal-Puga, 2005. "The Consistent Coalitional Value," Mathematics of Operations Research, INFORMS, vol. 30(4), pages 832-851, November.
    2. David Pérez-Castrillo & David Wettstein, 2005. "Implementation of the Ordinal Shapley Value for a three-agent economy," Economics Bulletin, AccessEcon, vol. 3(48), pages 1-8.
    3. Perez-Castrillo, David & Wettstein, David, 2006. "An ordinal Shapley value for economic environments," Journal of Economic Theory, Elsevier, vol. 127(1), pages 296-308, March.

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    More about this item

    Keywords

    Non-Transferable utility games; Shapley value; Ordinal Shapley value; consistency; fairness.;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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