A multiplicative potential approach to solutions for cooperative TU-games

Theo Driessen, E. Calvo

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Abstract

Concerning the solution theory for cooperative games with transferable utility, it is well-known that the Shapley value is the most appealing representative of the family of (not necessarily efficient) game-theoretic solutions with an additive potential representation. This paper introduces a new solution concept, called Multiplicativily Proportional ($MP$) value, that can be regarded as the counterpart of the Shapley value if the additive potential approach to the solution theory is replaced by a multiplicative potential approach in that the difference of two potential evaluations is replaced by its quotient. One out of two main equivalence theorems states that every solution with a multiplicative potential representation is equivalent to this specifically chosen efficient value in that the solution of the initial game coincides with the $MP$ value of an auxiliary game. The associated potential function turns out to be of a multiplicative form (instead of an additive form) with reference to the worth of all the coalitions. The second equivalence theorem presents four additional characterizations of solutions that admit a multiplicative potential representation, e.g., preservation of discrete ratios or path independence.
Original languageUndefined
Place of PublicationEnschede
PublisherUniversity of Twente, Department of Applied Mathematics
Publication statusPublished - 2001

Publication series

Name
PublisherDepartment of Applied Mathematics, University of Twente
No.1570
ISSN (Print)0169-2690

Keywords

  • MSC-91A12
  • IR-65757
  • EWI-3390
  • METIS-200320

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