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Allocation rules for cooperative games with restricted communication and a priori unions based on the Myerson value and the average tree solution

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We consider cooperatives games (TU-games) enriched by a system of a priori unions and a communication forest graph which are independent from each other. These two structures reflect the limitations… Click to show full abstract

We consider cooperatives games (TU-games) enriched by a system of a priori unions and a communication forest graph which are independent from each other. These two structures reflect the limitations of cooperation possibilities. In this framework, we introduce four Owen-type allocation rules, which are defined by a two-step application of an allocation rule a la Owen (in: Henn R, Moeschlin O (eds) Essays in mathematical economics and game theory, Springer, Berlin, 1977) to TU-games with a priori unions where the TU-game is replaced by Myerson’s (Math Oper Res 2:225–229, 1977) graph-restricted TU-game. The four possibilities arise by applying, at each step, either the Myerson value (Myerson 1977) or the average tree solution (Herings et al. in Games Econ Behav 62:77–92, 2008). Our main result offers comparable axiomatizations of these four allocation rules.

Keywords: priori unions; average tree; tree solution; allocation rules; myerson value; allocation

Journal Title: Journal of Combinatorial Optimization
Year Published: 2021

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