Balanced externalities and the Shapley value

McQuillin, Ben and Sugden, Robert (2018) Balanced externalities and the Shapley value. Games and Economic Behavior, 108. pp. 81-92. ISSN 0899-8256

PDF (Accepted manuscript) - Accepted Version
Available under License Creative Commons Attribution Non-commercial No Derivatives.

Download (388kB) | Preview


We characterize the Shapley value using (together with standard conditions of efficiency and equal gains in two-player games) a condition of ‘undominated merge-externalities’. Similar to the well-known ‘balanced contributions’ characterization, our characterization corresponds intuitively to ‘threat points’ present in bargaining. It derives from the observation that all semivalues satisfy ‘balanced merge-externalities’. Our characterization is applicable to useful, narrow sub-classes of games (including monotonic simple games), and also extends naturally to encompass games in partition function form.

Item Type: Article
Uncontrolled Keywords: shapley value,balanced contributions,merge-externalities,semivalues,coalitional bargaining
Faculty \ School: Faculty of Social Sciences > School of Economics
Depositing User: Pure Connector
Date Deposited: 28 Mar 2018 12:30
Last Modified: 30 Sep 2021 10:37
DOI: 10.1016/j.geb.2018.03.006

Actions (login required)

View Item View Item