Template-Type: ReDIF-Paper 1.0 Series: Tinbergen Institute Discussion Papers Creation-Date: 2011-03-14 Number: 11-052/1 Author-Name: Rene van den Brink Author-Workplace-Name: VU University Amsterdam, the Netherlands Author-Name: Anna Khmelnitskaya Author-Workplace-Name: Russian Academy of Sciences, St Petersburg, Russia Author-Name: Gerard van der Laan Author-Workplace-Name: VU University Amsterdam, the Netherlands Title: An Efficient and Fair Solution for Communication Graph Games Abstract: This discussion paper resulted in a publication in 'Economics Letters', 2012, 117, 786-789.

We introduce an efficient solution for games with communication graph structures and show that it is characterized by efficiency, fairness and a new axiom called component balancedness. This latter axiom compares for every component in the communication graph the total payoff to the players of this component in the game itself to the total payoff of these players when applying the solution to the subgame induced by this component. Classification-JEL: C71 Keywords: TU game, communication graph, Myerson value, fairness, efficiency File-Url: https://papers.tinbergen.nl/11052.pdf File-Format: application/pdf File-Size: 239952 bytes Handle: RePEc:tin:wpaper:20110052