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Average Tree Solutions and the Distribution of Harsanyi Dividends

Author

Listed:
  • Richard Baron

    (GATE Lyon Saint-Étienne - Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne - ENS de Lyon - École normale supérieure de Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - UJM - Université Jean Monnet - Saint-Étienne - CNRS - Centre National de la Recherche Scientifique)

  • Sylvain Béal

    (GATE Lyon Saint-Étienne - Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne - ENS de Lyon - École normale supérieure de Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - UJM - Université Jean Monnet - Saint-Étienne - CNRS - Centre National de la Recherche Scientifique, CRESE - Centre de REcherches sur les Stratégies Economiques (UR 3190) - UFC - Université de Franche-Comté - UBFC - Université Bourgogne Franche-Comté [COMUE])

  • Éric Rémila

    (GATE Lyon Saint-Étienne - Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne - ENS de Lyon - École normale supérieure de Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - UJM - Université Jean Monnet - Saint-Étienne - CNRS - Centre National de la Recherche Scientifique, LIP - Laboratoire de l'Informatique du Parallélisme - ENS de Lyon - École normale supérieure de Lyon - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - Inria - Institut National de Recherche en Informatique et en Automatique - Université de Lyon - CNRS - Centre National de la Recherche Scientifique)

  • Philippe Solal

    (GATE Lyon Saint-Étienne - Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne - ENS de Lyon - École normale supérieure de Lyon - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - UJM - Université Jean Monnet - Saint-Étienne - CNRS - Centre National de la Recherche Scientifique)

Abstract
We consider communication situations games being the combination of a TU-game and a communication graph. We study the average tree (AT) solutions introduced by Herings \sl et al. [9] and [10]. The AT solutions are defined with respect to a set, say T, of rooted spanning trees of the communication graph. We characterize these solutions by efficiency, linearity and an axiom of T-hierarchy. Then we prove the following results. Firstly, the AT solution with respect to T is a Harsanyi solution if and only if T is a subset of the set of trees introduced in [10]. Secondly, the latter set is constructed by the classical DFS algorithm and the associated AT solution coincides with the Shapley value when the communication graph is complete. Thirdly, the AT solution with respect to trees constructed by the other classical algorithm BFS yields the equal surplus division when the communication graph is complete.
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Suggested Citation

  • Richard Baron & Sylvain Béal & Éric Rémila & Philippe Solal, 2011. "Average Tree Solutions and the Distribution of Harsanyi Dividends," Post-Print halshs-00674425, HAL.
    • Handle: RePEc:hal:journl:halshs-00674425
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    References listed on IDEAS

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    1. Herings, P.J.J. & van der Laan, G. & Talman, A.J.J. & Yang, Z., 2010. "The average tree solution for cooperative games with communication structure," Games and Economic Behavior, Elsevier, vol. 68(2), pages 626-633, March.
    2. Lange, Fabien & Grabisch, Michel, 2009. "Values on regular games under Kirchhoff's laws," Mathematical Social Sciences, Elsevier, vol. 58(3), pages 322-340, November.
    3. Debasis Mishra & A. Talman, 2010. "A characterization of the average tree solution for tree games," International Journal of Game Theory, Springer;Game Theory Society, vol. 39(1), pages 105-111, March.
    4. Borm, P.E.M. & Owen, G. & Tijs, S.H., 1992. "On the position value for communication situations," Other publications TiSEM 5a8473e4-1df7-42df-ad53-f, Tilburg University, School of Economics and Management.
    5. Anna Khmelnitskaya, 2010. "Values for rooted-tree and sink-tree digraph games and sharing a river," Theory and Decision, Springer, vol. 69(4), pages 657-669, October.
    6. Gilles, Robert P & Owen, Guillermo & van den Brink, Rene, 1992. "Games with Permission Structures: The Conjunctive Approach," International Journal of Game Theory, Springer;Game Theory Society, vol. 20(3), pages 277-293.
    7. René Brink & Ilya Katsev & Gerard Laan, 2011. "Axiomatizations of two types of Shapley values for games on union closed systems," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 47(1), pages 175-188, May.
    8. Roger B. Myerson, 1977. "Graphs and Cooperation in Games," Mathematics of Operations Research, INFORMS, vol. 2(3), pages 225-229, August.
    9. Gabrielle Demange, 2004. "On Group Stability in Hierarchies and Networks," Journal of Political Economy, University of Chicago Press, vol. 112(4), pages 754-778, August.
    10. Mishra, D. & Talman, A.J.J., 2009. "A Characterization of the Average Tree Solution for Cycle-Free Graph Games," Discussion Paper 2009-17, Tilburg University, Center for Economic Research.
    11. van den Brink, Rene, 2007. "Null or nullifying players: The difference between the Shapley value and equal division solutions," Journal of Economic Theory, Elsevier, vol. 136(1), pages 767-775, September.
    12. Herings, P. Jean Jacques & van der Laan, Gerard & Talman, Dolf, 2008. "The average tree solution for cycle-free graph games," Games and Economic Behavior, Elsevier, vol. 62(1), pages 77-92, January.
    13. René Brink & Gerard Laan & Valeri Vasil’ev, 2007. "Component efficient solutions in line-graph games with applications," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 33(2), pages 349-364, November.
    14. Faigle, U & Kern, W, 1992. "The Shapley Value for Cooperative Games under Precedence Constraints," International Journal of Game Theory, Springer;Game Theory Society, vol. 21(3), pages 249-266.
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    Cited by:

    1. repec:hal:pseose:hal-00803233 is not listed on IDEAS
    2. Huseynov, T. & Talman, A.J.J., 2012. "The Communication Tree Value for TU-games with Graph Communication," Other publications TiSEM 6ba97d87-1ac6-4af7-a981-a, Tilburg University, School of Economics and Management.
    3. Béal, Sylvain & Rémila, Eric & Solal, Philippe, 2012. "Weighted component fairness for forest games," Mathematical Social Sciences, Elsevier, vol. 64(2), pages 144-151.
    4. Sylvain Béal & Eric Rémila & Philippe Solal, 2012. "Compensations in the Shapley value and the compensation solutions for graph games," International Journal of Game Theory, Springer;Game Theory Society, vol. 41(1), pages 157-178, February.
    5. Béal, Sylvain & Rémila, Eric & Solal, Philippe, 2015. "Characterization of the Average Tree solution and its kernel," Journal of Mathematical Economics, Elsevier, vol. 60(C), pages 159-165.
    6. Michel Grabisch, 2013. "The core of games on ordered structures and graphs," Annals of Operations Research, Springer, vol. 204(1), pages 33-64, April.
    7. Suzuki, T. & Talman, A.J.J., 2011. "Solution Concepts for Cooperative Games with Circular Communication Structure," Discussion Paper 2011-100, Tilburg University, Center for Economic Research.
    8. Sylvain Béal & Eric Rémila & Philippe Solal, 2022. "Allocation rules for cooperative games with restricted communication and a priori unions based on the Myerson value and the average tree solution," Journal of Combinatorial Optimization, Springer, vol. 43(4), pages 818-849, May.
    9. Napel, Stefan & Nohn, Andreas & Alonso-Meijide, José Maria, 2012. "Monotonicity of power in weighted voting games with restricted communication," Mathematical Social Sciences, Elsevier, vol. 64(3), pages 247-257.

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    Keywords

    Game theory;

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games

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