Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/86291
Authors: 
van den Brink, René
Year of Publication: 
2004
Series/Report no.: 
Tinbergen Institute Discussion Paper 04-127/1
Abstract: 
A situation in which a finite set of players can generate certain payoffs by cooperation can be described by a cooperative game with transferable utility. A solution for TU-games assigns to every TU-game a distribution of the payoffs that can be earned over the individual players. Two well-known solutions for TU-games are the Shapley value and the egalitarian solution. The Shapley value is characterized in various ways. Most characterizations use some axiom related to null players, i.e. players who contribute nothing to any coalition. We show that in these characterizations, replacing null players by zero players characterizes the egalitarian solution, where a player is a zero player if every coalition containing this player earns zero worth. We illustrate this difference between these two solutions by applying them to auction games.
Subjects: 
Null players
zero players
Shapley value
egalitarian solution
strong monotonicity
coalitional monotonicity
auction games
JEL: 
C71
D44
Document Type: 
Working Paper

Files in This Item:
File
Size
720.72 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.