Some game-theoretic grounds for meeting people half-way
Pedro Gadea-Blanco,
José-Manuel Giménez-Gómez () and
María del Carmen Marco-Gil
Working Papers from Universitat Rovira i Virgili, Department of Economics
Abstract:
It is well known that, in distributions problems, fairness rarely leads to a single viewpoint (see, for instance, Young (1994)). In this context, this paper provides interesting bases that support the simple and commonly observed behavior of reaching intermediate agreements when two prominent distribution proposals highlight a discrepancy in sharing resources. Specifi cally, we formalize such a conflicting situation by associating it with a `natural' cooperative game, called bifocal distribution game, to show that both the Nucleolus (Schmeidler (1969)) and the Shapley value (Shapley (1953a)) agree on recommending the average of the two focal proposals. Furthermore, we analyze the interpretation of the previous result by means of axiomatic arguments. Keywords: Distribution problems, Cooperative games, Axiomatic analysis, Nucleolus, Shapley value. JEL Classi fication Numbers: C71, D63, D71.
Keywords: Jocs cooperatius; Economia del benestar; Elecció social; 33 - Economia (search for similar items in EconPapers)
Date: 2013
New Economics Papers: this item is included in nep-gth and nep-hpe
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http://hdl.handle.net/2072/220217
Related works:
Working Paper: Some game-theoretic grounds for meeting people half-way (2010) 
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Persistent link: https://EconPapers.repec.org/RePEc:urv:wpaper:2072/220217
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