Template-Type: ReDIF-Paper 1.0
Series: Tinbergen Institute Discussion Papers
Creation-Date: 2007-08-24
Number: 07-062/1
Author-Name: René van den Brink
Author-Email: jrbrink@feweb.vu.nl
Author-Workplace-Name: VU University, Amsterdam
Author-Name: Yukihiko Funaki
Author-Email: funaki@waseda.jp
Author-Workplace-Name: Waseda University, Tokyo, Japan
Author-Name: Yuan Ju
Author-Email: Y.Ju@keele.ac.uk
Author-Workplace-Name: Keele University, Keele, UK
Title: Consistency, Monotonicity and Implementation of Egalitarian Shapley Values
Abstract: One of the main issues in economics is the trade-off between marginalism and egalitarianism. In the context of cooperative games this trade-off can be framed as one of choosing to allocate according to the Shapley value or the equal division solution. In this paper we provide tools that make it possible to study this trade-off in a consistent way by providing three types of results on egalitarian Shapley values being convex combinations of the Shapley value and the equal division solution. First, we show that all these solutions satisfy the same reduced game consistency. Second, we characterize this class of solutions using monotonicity properties. Finally, we provide a non-cooperative implementation for these solutions which only differ in the probability of breakdown at a certain stage of the game.
Classification-JEL: C71; C72; D60
Keywords: Shapley value; Equal division solution; Egalitarian Shapley value; Reduced Game Consistency; Monotonicity; Implementation
File-Url: https://papers.tinbergen.nl/07062.pdf
File-Format: application/pdf
File-Size: 355150 bytes
Handle: RePEc:tin:wpaper:20070062