Payoff Division
- Even if you did find the optimal CS, it might not be worth
much if its not stable. That is, if there are any agents who are
motivated to depart from that CS.
- We define the core of a CS to be the vector of
payoffs to agents such that no subgroup is motivated to
depart from the given CS.
- The core does not always exists, sometimes there are several
of them. The core is reminiscent of the Nash equilibrium.
- Another payoff division method can be established by
defining:
- i is a dummy if VS + i - VS = Vi
- i and j are interchangeable if for all S with either i
or j, VS remains the same if i is replaced with
j, or viz.
- We now want a set of payoffs that exhibit:
- Symmetry: If i and j are interchangeable then
xi = xj (where x is the set of
payoffs).
- Dummies: If i is a dummy then xi =
Vi.
- Additivity: For any two games V and W, xi in
V+W equals xi in V plus xi in W, where
V+W is the game defined by (V+W)S = VS
+ WS.
- The Shapely Value satisfies all these: It sets
xi = SUMS in A (|A| - |S|)!(|S| -
1)!(VS - VS - i)/ |A|!
- It obeys all three properties. It exists, and is unique. It
is pareto efficient (all the money is distributed among the
agents).
- But, there is no guarantee that a subgroup is better off by
splitting out. It takes a long time to compute.
José M. Vidal
.
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